How can the Russia and Ukraine war impact the oil and Gas industry in Next 5 years? What impact on Manufacturers and Suppliers of Pipes and Other piping Materials.

russia and ukraine war impact on steel industryGermany to look for alternative energy resources
Amidst the war between Russia and Ukraine, Germany has decided to seek an alternative to Russia. Earlier this month, Germany’s chancellor – Olaf Scholz attended a meeting with leaders of Gulf countries to talk about the future of energy. Potentially, Germany may have acquired three new allies in the form of the United Arab Emirates, Qatar and Saudi Arabia. If successful, Germany may soon be in talks with a gulf country for oil and gas.

Countries in the EU may require stronger pipelines
In the recent past, there have been concerns about sabotage attempts offshore oil and gas pipelines by Russia. Amidst a geopolitical war, several countries in the European Union have severed ties with Russian energy. Countries like Germany have already started looking out for prospective business allies in the middle east. Taking a protective stance, the United Kingdom has set up Marine surveillance jets based at RAF Lossiemouth to protect their assets.

Britain’s new government announces tax cuts
As the thread of Recession and inflation looms ahead, the new government announced tax cuts. To bolster the faltering economy, tax cuts would be funded by revenues generated by the anticipated growth and borrowing. The government’s two-pronged approach will offer a short-term respite to businesses that are struggling with soaring energy costs. Although there have been concerns regarding the sharp increase in the rate of borrowing, lowering the tax rate could have a positive impact on Britain’s economy.

Uk to licence new oil and gas extraction
In her acceptance speech, United Kingdom’s prime minister Liz Truss emphasised finding better ways to achieve net zero targets. While her priority is to deal with lowering energy bills, she concurrently seeks to deal with long-term energy supply. Does this mean the end of the moratorium on fracking? Many individuals have read this as a nod towards licensing new oil and gas extraction.

EU looking to reduce gas exports from Russia
According to Russian gas giant Gazprom, the natural gas deliveries to European Union countries, have fallen by a whopping 48%. Currently, the pricing structure favours Russia. However, Putin has threatened to discontinue the supply of gas to the EU bloc. The EU is already in talks with Norway to increase its gas imports to Europe. The government may strategies its long-term business relationship with Norway for its natural gas deliveries. One could speculate on the increase in demand for stainless steel pipelines in the near future.