White House Concerned About Energy Shortage Threat in Europe

Aug 29, 2022

(Bloomberg) The US is concerned about an energy shortage in Europe and will work to alleviate that potential threat as the European Union faces soaring power prices ahead of winter, a top White House aide said.

“We’re concerned about potential energy shortages in Europe as the winter approaches,” National Security Council spokesman John Kirby said Monday. “This is something we’re going to stay focused on as the fall turns to winter, and we’ll be latched up with allies and partners to try to do what we can to alleviate any shortages coming through.”

Russian efforts to squeeze gas deliveries have contributed to soaring power costs. On Monday, European Commission President Ursula von der Leyen said the bloc is considering urgent steps to ease the rise in prices, eventually seeking to break the link between gas and the cost of electricity.

European nations are also moving to encourage reduced consumption, and the EU is convening an emergency meeting of energy ministers on Sept. 9.

US President Joe Biden in March set up a joint task force with the EU focused on expanding energy suppliers to European nations in March. Kirby said the US would “continue to work with distributors, and energy companies around the world, to try to alleviate whatever shortages that might be in place, or might be coming going forward.”

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The Biden administration, though, is walking a difficult line in encouraging expanded energy resources for Europe while also maintaining adequate supplies for US consumers.

Energy Secretary Jennifer Granholm earlier this month wrote to refiners, including Exxon Mobil Corp., Valero Energy Corp., and Phillips 66, warning that the administration is considering “emergency measures” to address fuel exports if supplies of gasoline and diesel fuel remain at low levels in the Northeast. US officials say they are not considering export controls.

Kirby said he was confident of Europe’s commitment to supporting Ukraine, despite concerns about energy prices.

“What we see from a diplomatic perspective, what we see on the economic front, and frankly, what we see on the security assistance front, is an impressive, an absolutely unchanged sense of resolve and unity over supporting Ukraine,” he said.