Analysts question feasibility as framework trade deal outpaces current U.S. export capacityThe European Union’s commitment to purchase $250 billion in U.S. energy supplies annually under a new trade framework with Washington faces
Analysts question feasibility as framework trade deal outpaces current U.S. export capacity
The European Union’s commitment to purchase $250 billion in U.S. energy supplies annually under a new trade framework with Washington faces significant market challenges, according to analysts and industry observers.
The agreement, announced Sunday, includes 15% U.S. tariffs on most EU goods and a pledge by the EU to dramatically scale up imports of U.S. oil, liquefied natural gas (LNG), and nuclear technology for the next three years.
But experts say the plan far exceeds current market realities.
Scaling Beyond Market Limits
Total U.S. energy exports worldwide reached $318 billion in 2024, U.S. Energy Information Administration data shows. Of that, EU member states imported just $76 billion in petroleum, LNG, and solid fuels last year, according to Eurostat and Reuters’ calculations.
“Meeting this target would require a fundamental redirection of U.S. energy flows,” said Arturo Regalado, senior LNG analyst at Kpler. “Either U.S. oil exports shift almost entirely to the EU, or LNG import values from the U.S. increase sixfold. It exceeds market realities.”
Global Competition for U.S. Energy
The EU is not alone in its push to secure American energy. Japan last week announced a “major expansion”
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