Source: Brian Wang

How hard would it be to replace Russian oil and gas exports to Europe and then to Asia? Brad Templeton wrote on Facebook that 50% of Russians get their income from the government, which gets 43% of its revenue from oil and gas and is 1/3rd of the GDP. Putin rules only because Europe keeps sending him money to buy fossil fuel we want to stop burning.

Here is a summary:
* Germany can keep all six of their nuclear reactors running and not need to import 60 TWh per year of energy

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* France can increase nuclear electricity exports to Germany which France has done for decades. This could replace half of Germany’s natural gas for electricity needs in 2022 and all of it by 2023.
* The US could increase nuclear energy generation to free up natural gas. This could be used to reduce non-European Liquified natural gas demands. Building up liquified natural gas production facilities and import and export terminals would take some time. But substantial progress could be made by next year.
* 2 out of the 5 million barrels per day of Russian oil exports could be replaced in 2022 and probably 1-2 million barrels per day for each of the next two years.
* there is also some short pipelines that would need to be built to move oil and gas around to new Eastern European locations
* The GDP hit could be minimized to 2-3% and it would be one year or less in 2023. Germany keeps running their nuclear reactors. This is 60 TWh/year. The natural gas imports remaining would be 60 TWh/year. 30 TWh/year less than just one month ago and the shutdown of the three nuclear reactors. France’s increasing electricity would replace the natural gas needed for German electricity. France would need to move around their shutdown for maintenance and refueling schedule to keep more generators online and then during a shutdown, they need to perform stretch uprates 2-7% nonturbine boosts. Maxing LNG imports as is already being done minimizes disruption. Maybe 10-20% drop in natural gas instead of 40% which is Russia’s share of Europe’s natural gas. Full recovery next year.
* It would likely end up being global swapping. China would take all of Russia’s oil and gas. Europe would then shift to its own nuclear energy and US, Canada, Saudi, and Qatar oil and natural gas. But Russia would have no more energy leverage in Europe.

What happens if Russia cuts off or is forced to cut off its gas pipelines, and the answer is it would be tough, but Europe would manage. But what if Europe stops paying, not now, but in the spring, when it has 6 months before winter to reconfigure to use imported LNG and other sources, re-boot their shuttered nukes, install more renewables, and turn up all the non-Russian fossil fuel it can get its hands on?

European utilities have increased orders of shipped liquefied natural gas cargoes over the Christmas and New Year period. This is mainly from the U.S. and Qatar, which have around 100 cargoes scheduled to arrive in Europe in January alone. Eurasia Group said, citing ship tracking data, that this reflected an increase of roughly 40% from the previous record in March 2021.