“Buy My Oil & Gas, Unless I will Punish You” The lesson I have missed in my Business Courses
Mr. Choeib Boutamine
December 21, 2024
Mr. Choeib Boutamine
In the competitive world of business, marketing plays a pivotal role in attracting clients and capturing customers’ attention. It is a common and legitimate strategy used by CEOs and board members to persuade customers. However, there is a new approach, seemingly introduced by Trump, that raises eyebrows: a coercive tactic where customers are compelled to buy products (specifically Oil & Gas) under the threat of punishment if they refuse.
The recent surge in Russian LNG exports to the EU, hitting a high record of 22 bcm in 2024, despite the EU’s efforts to reduce reliance on Russian gas, has triggered Trump’s ire. He has issued threats against the EU, warning of potential tariffs on countries that do not increase purchases from the US.
In contrast, the US stands as the world’s largest producer and exporter of natural gas, set to reach 116 bcm of exports in 2024, with over 50% destined for Europe. However, a decline in European purchases by 20 bcm compared to the previous year has left Trump dissatisfied. As US suppliers pivot towards Asian markets to find alternative opportunities, Trump is eyeing the European market for greater profitability.
This shift presents a significant opportunity for the US to capture an additional market share of 14.5 bcm from piped natural gas routes linking Russia to Europe via Ukraine. Norway leads as the largest natural gas supplier to Europe, followed by the US. In the LNG sector, the US dominates European supplies, followed by Russia and Algeria. For piped gas, the order is Norway, Russia, and then Algeria.
With the US aiming to expand its presence in the European market, questions arise about its strategy. Will this move sideline Norway and Algeria, akin to its actions against Qatar? And if so, do these countries have viable alternatives in place?
In the end, I don’t want to learn the lesson “ if you don’t buy my product I will punish you” at least for the moment, but I may change my mind over time, as this could be a lesson that I have missed in my business courses!
By Choeib Boutamine
RANADRILL CONSULTING
