Filenews 21 December 2024
U.S. President President Donald Trump said on Friday that the European Union, already the biggest buyer of U.S. energy, should increase U.S. oil and gas imports or face tariffs on the bloc's exports that include goods such as cars and machinery.
The EU already buys the lion's share of U.S. oil and gas exports, according to U.S. government data.
There are currently no additional quantities as the United States exports to the limit of its capabilities, but Trump has pledged to further increase the country's oil and gas production.
"I told the European Union that they need to cover their huge deficit with the United States with our large-scale purchase of oil and gas," Trump said on Truth Social.
"Otherwise, it's tariffs to the end!!!," he added.
The European Commission said it was ready to discuss with Trump how to strengthen what it called an already strong relationship, including in the energy sector.
"The EU is committed to phasing out energy imports from Russia and diversifying its sources of supply," a spokesman said.
The United States already supplies 47% of the European Union's liquefied natural gas imports and 17% of oil imports in the first quarter of 2024, according to data from EU statistics office Eurostat.
Trump, who takes office on Jan. 20, has promised to impose tariffs on most, if not all, imports, and has said Europe will pay a heavy price for the large trade surplus it has held with the United States for decades.
Trump has repeatedly pointed to the U.S. trade deficit for goods, but not trade overall. EU exports are dominated by Germany with cars, machinery and chemicals as key goods.
The US had a deficit in trade in goods with the EU of EUR 155.8 billion. euro last year. However, in services they had a surplus of EUR 104 billion. euro, according to Eurostat data.
Trump has already promised high tariffs on three of the United States' biggest trading partners — Canada, Mexico and China.
Most European oil and gas refiners are privately owned, and governments have little say in where their purchases come from unless authorities impose sanctions or tariffs. Owners usually buy their resources based on price and efficiency.
The EU has sharply increased purchases of U.S. oil and gas following the bloc's decision to impose sanctions and reduce dependence on Russian energy following Moscow's invasion of Ukraine in 2022.
The United States has grown in recent years into the world's largest oil producer with production of more than 20 million barrels of liquid petroleum products per day (bpd), or one-fifth of global demand. It exports all the crude oil that it cannot consume domestically.
U.S. crude exports to Europe amount to about two million barrels per day, accounting for more than half of total U.S. exports, with the rest going to Asia.
The Netherlands, Spain, France, Germany, Italy, Denmark and Sweden are the largest importers, according to U.S. government data.
The United States is also the world's largest producer and consumer of natural gas with production of more than 103 billion cubic feet per day (bcfd).
The U.S. government forecasts that U.S. liquefied natural gas (LNG) exports will average 12 bcfd in 2024. In 2023, Europe accounted for 66% of U.S. liquefied natural gas exports, with the main destinations being the UK, France, Spain and Germany.
U.S. oil production growth will likely be slow through 2030, according to the International Energy Agency (IEA).
Natural gas production, meanwhile, could rise further to meet record U.S. domestic demand, and liquefied natural gas exports could also increase if the government approves more liquefied natural gas terminals.
The EU imported about 2 bcfd of Russian LNG in 2024 and could move to ban those supplies and seek replacement from other sources.
CNA-Reuters
