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00:00In terms of the current situation when it comes to the natural gas market where do we stand. There just isn't enough of it. The world has doubled down on natural gas as a shift away from coal and diesel to power their economies and heat their homes. And because of that there is this enormous demand for gas from Europe to Asia to the United States South America around the world. There is enormous demand but there isn't enough supply. Supply isn't keeping up not only because of Russia but also because of an underinvestment in natural gas upstream supply because of the energy transition. While folks didn't want to use natural gas to shift away from dirtier coal they were still reluctant to invest in new supply. And there was this kind of tight rope balance where Russia was providing just enough supply to the market the LNG facilities in the US as well. But we look in the story that there was a outage in the US plant. Russia is curbing supply and suddenly there's a shortage. And countries don't know what to do because they're dependent on the fuel to power their economies. And you see things that are happening in Germany like they're having a bailout unifier. Good afternoon. Stephen said there just isn't enough natural gas at there. How bad is it gonna get in this northern hemisphere winter for the global natural gas market. And on which countries or which regions will see the biggest problems. It's going to get probably pretty bad. Of course how bad it gets depends on how much gas Russia sends to Europe. Europe is in a very weak position there probably one of the most exposed because they depend on Russian natural gas more than any other region in the world. And if they don't get that gas they're unable to fill their inventories by the winter time. They should be filling them now but they're unable to do so. Then you could see gas rationing. You could see industries totally shut down in Germany and other countries are dependent on Russian gas because there just isn't enough. And they want to keep the gas flowing to the house's other major importers in Asia. China is a big importer of liquefied natural gas. They could see a crunch. Japan is very dependent on LNG. Singapore where we are right now also is an enormous importer of natural gas. And they could see prices rise. I know my power bill is rising. That is likely going to continue as we get closer to winter.

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The World Needs More Gas But There Isn't Enough

Natural gas is the hottest commodity in the world right now and there isn’t enough of it to go around. It’s a key driver of global inflation and at the heart of a dawning era of confrontation between the great powers. Stephen Stapczynski reports on Bloomberg Television. (Source: Bloomberg)

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