Top EU officials accuse Joe Biden’s administration of profiteering from the war in Ukraine.  

Speaking with Politico, an anonymous official said: “The fact is, if you look at it soberly, the country that is most profiting from this war is the U.S. because they are selling more gas and at higher prices, and because they are selling more weapons.”  

But why would this surprise? America has openly pursued an aggressive transatlantic energy policy towards the European Union for decades, through a hegemonic grip, and leadership of NATO; fearing a growing Russian influence and takeover of the largest single market in the world. 

A White House official called the accusations of profiteering false and stated that Washington only wanted to help Europe prepare for the winter.  

“The rise in gas prices in Europe is caused by Putin’s invasion of Ukraine, and energy war against Europe, period,” said a spokesperson for the National Security Council.  

Stating further, that American liquefied natural gas (LNG) to Europe had “enabled Europe to diversify away from Russia.”  

Joe Biden’s Inflation Reduction Act (IRA), a $739 billion bill that prioritizes large subsidies invested specifically into American companies to reboot manufacturing, and green technology, also has EU officials angry, accusing America of causing a looming trade war that unfairly competes against the European Union.

Emmanuel Macron speaks at a climate and biodiversity lunch with US Climate Envoy John Kerry, members of the United States Congress, and key US stakeholders, at the US Capitol in Washington, DC, on November 30, 2022. BRENDAN SMIALOWSKI / AFP

As one official said to Politico: “The Inflation Reduction Act has changed everything.” Asking: “Is Washington still our ally or not?”

“We are in Europe, really, at the point where we risk to be de-industrialized,” Belgian Prime Minister Alexander De Croo said to France 24.

French President, Emmanuel Macron, called America’s gas pricing, “unfriendly,” and blasted US lawmakers and industrialists over the IRA bill at a recent working lunch in Washington, according to an AFP reporter.

“This is super aggressive for our business people,” Macron said. “The consequence of the IRA is that you will perhaps fix your issue but you will increase my problem. I’m sorry to be so straightforward.

“I don’t want to become a market to sell American products because I have exactly the same products as you,” he said.

Responding, the White House insisted that Macron’s state visit was building on the two presidents’ “warm relationship.”

“This is serious stuff.”

Jamie Dimon

Jamie Dimon, Al Drago/ Bloomberg/Getty Images.

What is clear is that America has waged a long-term energy war to remove Russian energy from Europe to be replaced by high-priced U.S. energy, to stabilize their economy from falling into a major recession, predicted recently by Jamie Dimon, Head of JP Morgan Chase Bank. 

“This is serious stuff,” Dimon told Julianna Tatelbaum at CNBC, citing runaway inflation, and rising interest rates: predicting an “economic hurricane,” mid-2023, caused by the Federal Reserve’s slow action, and the war in Ukraine.  

“These are very, very serious things which I think are likely to push the U.S. and the world — I mean, Europe is already in recession,” he said.

The U.S. Energy Information Administration (EIA), in March, reported that Russia, in 2021, was the largest natural gas exporting country in the world, second in crude oil after Saudi Arabia, and third in coal behind Indonesia and Australia. 

In 2022, the U.S. took over the top spot, filling a vacancy left by Russia, to become the world’s largest exporter of liquified natural gas (LNG) and Europe’s largest supplier.  

Liquefied natural gas tanks at Cheniere Energy Inc.’s Sabine Pass, LNG terminal, Louisiana.

Corey Grindal, executive vice president in charge of worldwide trading at Cheniere, the leading exporter of liquified gas from the U.S. said: 

“I think that you will continue to see US and worldwide LNG make its way to Europe if gas prices remain high enough.” Stating that Europe would have to be prepared to invest in expensive infrastructure, and commit to long-term contracts, which will cost billions of dollars. 

Stressing that infrastructure takes time to build, is expensive, and could take until the end of the decade for any additional supplies.

“When you look at the next 12 to 24 months, realistically, there is no new liquefaction capacity that is able to come online, and that’s worldwide,” he said to Euractiv.

“Increased export capacity of US-LNG is critical in spreading “molecules of US freedom” throughout the world.

US Under Secretary of Energy Mark W. Menezes

“For the long term, we’re willing to expand – with the right contract support that justifies building these very large, expensive facilities,” said Grindal, adding that expansion will only happen if the EU is stable, and in a position to sign up to long-term contracts.

However, the European Commission is not predisposed to long-term contracts, preferring spot price trading, which created problems in 2021 when traders pushed the prices up due to low storage, and low wind power, coming out of lockdown.

“If you don’t have more regasification facilities, there won’t be any more LNG that’s able to enter the continent,” Grindal said. “Regardless of whether it’s from the US or anywhere else – that’s just the physics.”

Sanctions imposed on Russia across 2022, which effectively removed them from being the main supplier to the EU, have created a worldwide shortage of natural gas

Chevron names an oil tanker after Condoleezza Rice, former National Security advisor to President George W. Bush. Image R. Matterson

Since JFK, in 1963, told NATO countries not to sell big-inch tubing to Russia for the Friendship Pipe coming out of the Far East into Europe; Condoleezza Rice, former US Secretary of State, in 2014, was on German television urging Europeans to abandon cheap Russian gas and start buying American, saying:  

“You want to have pipelines that don’t go through Ukraine and Russia,” and depend on North America. 

President Trump sanctioned Nord Stream, and called the E.U. “delinquent,” in 2018, in a meeting with NATO’s Chief Stoltenberg, in Brussels. Demanding to know why billions of dollars were spent on Russian energy, saying: “I think that’s very inappropriate.” 

In 2019, under Trump, US Under Secretary of Energy Mark W. Menezes made it clear that an increased export capacity of US-LNG is critical in spreading “molecules of US freedom” throughout the world.

While promoting American energy, American jobs, and the American economy.

As gas prices rise to an all-time high, industry and manufacturing are closing down across Europe, with some relocating to the U.S. for cheap fracked Shale gas and Biden’s new green trade subsidies that will unfairly discriminate against Europe. 

“I think that you will continue to see US and worldwide LNG make its way to Europe if gas prices remain high enough.”

Corey Grindal, Cheniere

Far from being green, fracking is banned across the EU and has caused considerable pollution across the US with water contamination. Cheniere was forced to pay $1.5 million in fines just recently over safety violations. The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), shut down several leaking tanks at its Sabine Pass LNG export plant in Louisiana – Reuters.

Europe also faces a devastating trade war with the U.S., while trapped with expensive U.S. energy, that will have devastating consequences for years to come, with industry closure, hyperinflation, and job losses. 

Meanwhile, Michael Wirth the Chief Executive of Chevron is seizing the opportunity to partner with Cheniere to “expand into a red-hot market.” Taking advantage of “sky-high” prices with demand expected to double by 2040, placing the US as the World’s largest LNG exporter – Reuter’s.

Chevron will also be one of the world’s largest LNG “off-takers” as they tap into the global natural gas boom, signing deals with Cheniere, and Venture Global.

While Exxon Mobile will invest over $30 billion, in what will be the world’s largest LNG project in Qatar, leaning heavily on Iran’s South Pars, which has the largest reserves in the world.

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