Three Years After Ukraine Invasion, Europe Still Deals With Energy Crisis

Published On Feb 3, 2025, 12:01 AM

The article describes Europe's transformation in energy sourcing following the 2022 invasion of Ukraine by Russia. To reduce reliance on Russian natural gas, Europe has turned to liquefied natural gas (LNG) imports from the United States, alongside a significant increase in renewable energy generation from wind and solar sources. Despite these changes, energy costs in Europe remain high compared to the US, leading to economic strain on households and businesses. Future energy security for Europe remains a concern as it continues to rely heavily on imports.

Stock Forecasts

NEE

Positive

As Europe continues to phase out Russian gas and heavily invests in LNG imports and renewable energy, companies involved in these sectors may see increased demand and growth opportunities. Stocks related to clean energy and LNG, such as NextEra Energy (NEE) and Cheniere Energy (LNG), could benefit from these trends.

BP

Negative

Conversely, European energy market strains and high costs could lead to negative prospects for traditional oil and gas players facing increasing competition from global LNG and renewables. This could affect companies like BP plc (BP), making them less attractive to investors in the short term.

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NEE
SRE

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The job losses at the oil giant will affect more than 5% of its global workforce.