157
[the administration’s] lack of focus on the Caspian region is the fact that Washington left its
embassy in Baku without an ambassador for most of the first half of the Obama
Administration. In addition, Washington is focusing its efforts vis-a-vis the former Soviet
Union, on improving relations with Moscow and wants to avert issues. (Shaffer 2010:7212)
Obama Administration and US LNG Exports to the EU
The dramatic progress made in the shale gas industry in the United States has
changed the country from an energy importer to an energy exporter. Shale gas has
had a major impact on energy prices around the world. Prior to the Shale Gas
Revolution, which was driven by advanced technology and innovation, America’s
dependence on external energy sources, especially the Middle East, was on the
increase (http://www.bbc.com/persian/iran-45154543 2018).
The United States uses energy exports, especially LNG, to expand its relations with its
neighbors and allies anywhere in the world. The energy security of the European Union and
its strong dependence on Russian gas have led the United States to have a special look at the
energy market of the European Union, and with the increase in LNG exports along with the
acceleration of the construction of the Southern Corridor, the gas will require the Union to
depend on Russia. Slowly the East Asian market, especially South Korea and Japan, which
imports the majority of gas condensate from Iran, is a good opportunity for LNG to play a
role in South Korea’s energy security. Looking at the state of import of Iranian oil and gas
condensate from Iran, the LNG role of the United States could be furthered in sanctions of
Iran. (http://www.bbc.com/persian/iran-45154543 2018)
During 2016, the United States increased exports of liquefied natural gas to
Europe, but despite these efforts, its share of the continent’s gas market is only 6%.
One of the obstacles to developing US markets in Europe is the 34% dependence of
European countries on Russia. Given the fact that imported gas from Russia comes
at a cheaper price to European countries, they are reluctant to replace it with
imported gas from the United States. The ultimate goal of the United States in terms
of energy sanctions against Moscow is to reduce Russia’s gas exports to European
countries and possibly sell its gas to more European countries. The plan was
announced for the first time in 2014 by Barack Obama at a meeting with EU leaders.
At that time, the US government announced that, given the rapid growth of US shale
gas production, it could replace all Russian gas exports to Europe.
The United States follows these two main goals: first, by reducing the export of
Russian gas to Europe, reducing the position of Moscow in Europe, and secondly,
by closing European countries to its energy, it can restrict the European Union in the
long run. That is why some European countries have little desire to expand US influence in European markets.
However, Americans are still struggling to impede the completion of the two
main pipelines 2 and the Turkish pipeline by imposing economic sanctions, some of
which have been successful. As one of the partners in the project, it has been
announced that US penalties for the North Stream 2 project have been difficult and
70% of project costs cannot be financed. Despite financial problems, Russia intends
Obama Administration and US LNG Exports to the EU
[the administration’s] lack of focus on the Caspian region is the fact that Washington left its
embassy in Baku without an ambassador for most of the first half of the Obama
Administration. In addition, Washington is focusing its efforts vis-a-vis the former Soviet
Union, on improving relations with Moscow and wants to avert issues. (Shaffer 2010:7212)
Obama Administration and US LNG Exports to the EU
The dramatic progress made in the shale gas industry in the United States has
changed the country from an energy importer to an energy exporter. Shale gas has
had a major impact on energy prices around the world. Prior to the Shale Gas
Revolution, which was driven by advanced technology and innovation, America’s
dependence on external energy sources, especially the Middle East, was on the
increase (http://www.bbc.com/persian/iran-45154543 2018).
The United States uses energy exports, especially LNG, to expand its relations with its
neighbors and allies anywhere in the world. The energy security of the European Union and
its strong dependence on Russian gas have led the United States to have a special look at the
energy market of the European Union, and with the increase in LNG exports along with the
acceleration of the construction of the Southern Corridor, the gas will require the Union to
depend on Russia. Slowly the East Asian market, especially South Korea and Japan, which
imports the majority of gas condensate from Iran, is a good opportunity for LNG to play a
role in South Korea’s energy security. Looking at the state of import of Iranian oil and gas
condensate from Iran, the LNG role of the United States could be furthered in sanctions of
Iran. (http://www.bbc.com/persian/iran-45154543 2018)
During 2016, the United States increased exports of liquefied natural gas to
Europe, but despite these efforts, its share of the continent’s gas market is only 6%.
One of the obstacles to developing US markets in Europe is the 34% dependence of
European countries on Russia. Given the fact that imported gas from Russia comes
at a cheaper price to European countries, they are reluctant to replace it with
imported gas from the United States. The ultimate goal of the United States in terms
of energy sanctions against Moscow is to reduce Russia’s gas exports to European
countries and possibly sell its gas to more European countries. The plan was
announced for the first time in 2014 by Barack Obama at a meeting with EU leaders.
At that time, the US government announced that, given the rapid growth of US shale
gas production, it could replace all Russian gas exports to Europe.
The United States follows these two main goals: first, by reducing the export of
Russian gas to Europe, reducing the position of Moscow in Europe, and secondly,
by closing European countries to its energy, it can restrict the European Union in the
long run. That is why some European countries have little desire to expand US influence in European markets.
However, Americans are still struggling to impede the completion of the two
main pipelines 2 and the Turkish pipeline by imposing economic sanctions, some of
which have been successful. As one of the partners in the project, it has been
announced that US penalties for the North Stream 2 project have been difficult and
70% of project costs cannot be financed. Despite financial problems, Russia intends
Obama Administration and US LNG Exports to the EU