WEBVTT - Dan Murtaugh on Nordstream Hit (Audio)

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<v Speaker 1>We do have Dan Myrtile with US Bloomberg's Asia Energy

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<v Speaker 1>Reporter to take a closer look at this story about

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<v Speaker 1>what looks to be dan to be sabotage on the

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<v Speaker 1>nord Stream pipeline. Yeah, you know, as as everybody knows,

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<v Speaker 1>you know, Russia has been sort of slowly squeezing off

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<v Speaker 1>gas supplies to Europe for nearly a year now, ever

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<v Speaker 1>since last winter, and it just took an unprecedged step yesterday. Um,

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<v Speaker 1>there were two underwater explosions noticed by the Swedish authorities,

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<v Speaker 1>and shortly after in those exact locations, uh, gas started

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<v Speaker 1>bubbling up to the surface of the Baltic Sea. Uh.

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<v Speaker 1>There's been no concrete um investigation done because it's so soon,

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<v Speaker 1>but it certainly appears that some explosions, Uh, there's pipeline damage.

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<v Speaker 1>Their gas is leaking out of the pipelines up into

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<v Speaker 1>the atmosphere, which is horrible for the climate. And it's

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<v Speaker 1>all but certainly mean that there will be no gas

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<v Speaker 1>coming along the nord Stream one pipeline into into Europe

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<v Speaker 1>this winter, which is just making the energy crisis they're

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<v Speaker 1>that much more severe. Yeah, I was gonna say, what

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<v Speaker 1>does this mean? And when we're already facing this very

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<v Speaker 1>dire crossis because it does put at risk, what what

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<v Speaker 1>little gas is still flowing to Northwest Europe from Russia

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<v Speaker 1>very much at play. Yeah, you know, the at the

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<v Speaker 1>time of the explosions yesterday, the pipelines had already both

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<v Speaker 1>been basically um neutered by Russia. Nord Stream two had

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<v Speaker 1>never even gotten off the ground, and nord Stream one

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<v Speaker 1>had been had stopped delivering a couple of days ago

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<v Speaker 1>after Russia said it had needed some maintenance issues done

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<v Speaker 1>on a compressor station. Um. But this basically there there

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<v Speaker 1>was some hope left in the market that you know,

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<v Speaker 1>compressor stations could get fixed, some flows would resume, and

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<v Speaker 1>Europe could get start getting some gas from Russia again

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<v Speaker 1>this winter. Um, that hope is all but gone now,

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<v Speaker 1>as the idea that this is possible sabotage means that

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<v Speaker 1>you know, this is not just you know, whatever I

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<v Speaker 1>thought you may have had, that this could all just

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<v Speaker 1>the coincidence that Russia was squeezing off these supplies at

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<v Speaker 1>the same time in the Ukraine War, that these maintenanceances

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<v Speaker 1>just happen to happen at the same time. Very very

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<v Speaker 1>few people are confident that that that's possibly the case.

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<v Speaker 1>Now everybody is gas traders are starting to price in

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<v Speaker 1>the idea that Russia really wants to to punish Europe

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<v Speaker 1>for its support of Ukraine. And there's no real arbitrage

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<v Speaker 1>opportunities here. I mean, they can't exactly get supply in

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<v Speaker 1>from from other places. I mean they can, but but

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<v Speaker 1>it's it's limited in scope, and and so you wonder

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<v Speaker 1>what the political ramifications from this might be. You know,

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<v Speaker 1>the European countries are trying to do several things, depending

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<v Speaker 1>on the country. A couple of them have ellen g

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<v Speaker 1>terminals and pipelines from elsewhere. Um Italy, which used to

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<v Speaker 1>get about of its pipeline or its gas supply from Russia,

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<v Speaker 1>has said that it's made arrangements to make sure it's

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<v Speaker 1>going to get all of its gas from other sources

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<v Speaker 1>this winter. Germany is scrambling to build lergy import terminals

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<v Speaker 1>so it can bring in more cargoes from the Middle

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<v Speaker 1>East from the US UM. But but there are props

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<v Speaker 1>with that, as you alluded to. You know, other countries

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<v Speaker 1>want that that those lergy cargoes, other countries that are

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<v Speaker 1>used to getting it um. You know, Europe's demand has

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<v Speaker 1>put gas prices through the roof lerg freight prices. These

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<v Speaker 1>tankers are going for sometimes up near two hundred thousand

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<v Speaker 1>dollars a day um. All of this stuff is skyrocketing,

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<v Speaker 1>and it's hurting economies all over the world, merging economies

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<v Speaker 1>like Pakistan and Bangladesh, who you know, we're reliant on

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<v Speaker 1>natural gas but can't afford to pay these these super

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<v Speaker 1>high fees, that can't apport afford to compete with with

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<v Speaker 1>rich countries like Germany for these limited supplies. So it's

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<v Speaker 1>you know, the pain in Europe is is cute, but

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<v Speaker 1>but it's actually spreading through the rest of the world

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<v Speaker 1>as well. Yeah. Indeed, and we've been saying that in

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<v Speaker 1>terms of US gasoline spikes as well. Just tell us

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<v Speaker 1>what we're watching, because there's also refinery outages in the

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<v Speaker 1>Midwest adding to this story too. Yeah, you know, the

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<v Speaker 1>US market is um the US is actually in probably

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<v Speaker 1>the best shape of any major economy in terms of

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<v Speaker 1>energy just because it has you know, plentiful supply of

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<v Speaker 1>its own oil and gas. It's become a major exporter

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<v Speaker 1>in recent years. But you know, there's a hurricane flowing

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<v Speaker 1>through the Gulf of Mexico. That's going to be hurting

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<v Speaker 1>gasoline supplies in Florida and oil supplies in the Gulf Mexico.

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<v Speaker 1>There's you know, refinery adages that are threatening to to

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<v Speaker 1>halt this long decline in gasolene prices that that Joe

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<v Speaker 1>Biden was so excited about heading into the mid term

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<v Speaker 1>elections later this fall. Um. You know, the energy market

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<v Speaker 1>globally is just incredibly tight right now, and it's going

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<v Speaker 1>to remain that way through the winter. I guess we

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<v Speaker 1>should ask you briefly. These gas leaks would be posing

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<v Speaker 1>some risks environmental and safety risks. So what do we

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<v Speaker 1>know so far? Yeah, I mean, several of the European

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<v Speaker 1>nations around they have created no no travel zones around

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<v Speaker 1>these gas leaks, which are still bubbling up to the

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<v Speaker 1>surface at least as of the last time there was

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<v Speaker 1>light out that we could see. Um um and natural gas.

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<v Speaker 1>The biggest component is a is a gas called messy

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<v Speaker 1>that's a H four and it is an incredibly potent

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<v Speaker 1>greenhouse gas. It traps heat at eighty times the rate

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<v Speaker 1>that carbon dioxide does. So it's uh, you know, it's

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<v Speaker 1>bubbling up to the atmosphere and just going to soak

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<v Speaker 1>up there and really push more global warming. Uh, you know,

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<v Speaker 1>even as everything the world was trying to do to

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<v Speaker 1>halt climate change on that night, Unfortunately down we have

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<v Speaker 1>to leave at their denmotop bloom Bows Asia Energy Reporter