Extreme Dependence: Europe’s Thirst for US Gas is Coming

You might recall that I spent a lot of time detailing the opportunity in uranium stocks earlier this year.

Including a Three-part series that dug into France’s uranium supply problems.

As I explained, France has built a significant competitive advantage in Western Europe thanks to its unwavering dedication to nuclear power.

In fact, of all the nations that have taken on the nuclear challenge, including Germany, the US, and Japan, France is the only country that has maintained its commitment.

Russia’s Chernobyl disaster, America’s Three Mile Island accident in Pennsylvania and Japan’s Fukushima disaster in 2011 have caused others to falter on their ‘nuclear ambitions.’

With almost 70% of its total energy derived from nuclear energy, France offers a playbook for how resource-starved nations can guarantee energy security.

And that’s more important NOW than ever, especially for energy-starved Europe.

An issue that just elevated to new heights last week.

Europe’s EXTREME energy dependency

Last week, the EU announced plans to ban Russian LNG imports a year earlier than envisaged as part of its sanctions against Moscow.

This is a result of immense pressure from US President Donald Trump to cut off Russia’s source of ‘war income.’

So, where does that leave Europe?

While cutting off Russian gas seems to be an act of ‘goodwill’ for Ukraine, the reality is that Russia can find new buyers. And continue to fund its war against Ukraine with gas revenue.

All it has to do is find an alternative buyer, and that’s not hard when an energy-hungry manufacturing giant (China) is right at its doorstep!

On Monday, I detailed Russia’s plans to expand gas exports to China with a new pipeline deal signed earlier in the month.

So it begs the question: who really wins from Trump’s push to end Europe’s reliance on Russian gas?

In my mind, China will be the major winner, securing cheap gas from Russia.

However, the other big winner could be US gas companies.

These companies will be lining up to fill the void as Europe abandons its reliance on Russian gas.

And in all likelihood, that’s probably the true motive from Trump… Juicing profits for US-based LNG suppliers.

As Europe fast-tracks its pivot away from Russian gas, US companies will probably fill the void. And that’s a trend worth following as a resource investor.

How to do it

The US oil and gas sector is a relatively niche market for Aussie investors. But it’s worth pursuing if you want to capitalise on a true growth trend.

Energy is the critical element keeping economies functioning. But like any commodity, it is dependent on supply and demand.

Traditionally, the US has produced ample natural gas, which has kept prices low and share prices depressed for gas producers.

That’s been good news for the US consumer.

However, Europe’s pivot AWAY from Russian gas could push prices higher as demand increases for US LNG.

Generating a potential windfall for US gas stocks.

Right now, these companies are incredibly cheap. But for how long?

Europe desperately needs American gas.

The equation is simple: more buyers mean higher prices, providing higher margins for US gas producers.

That’s one of the key reasons I recommended a US gas producer to my premium readership group on Monday.

A leveraged play on Europe’s pivot to American gas.

To access the details, you can do so here.