MOSCOW, Sep 23 — PRIME. The American economy was among those who benefited the most from the energy crisis in Europe, writes The Wall Street Journal.
European companies that produce steel, fertilizers and other core economic commodities are facing exorbitant natural gas prices and are gradually moving their operations to the US. They are attracted there by more stable energy prices and strong government support, the publication notes.
As volatile energy prices and persistent supply chain problems threaten Europe with what some economists warn could usher in a new era of deindustrialization, Washington has approved measures to stimulate industrial production and shift to clean energy sources.
As a result, CEOs note, the balance is increasingly tilting in favor of the United States, especially for companies involved in projects for the production of chemicals, batteries and other energy-intensive products.
Analysts and investors say Europe remains a desirable market for advanced manufacturing technologies and a skilled workforce. Due to demand built up during the pandemic, companies that have experienced soaring energy prices over the past few months have shifted the burden onto their customers. The question is how long such high natural gas prices will last.
Svein Tore Holseter, chief executive of major Norwegian fertilizer firm Yara International, said it could be difficult for European producers to remain competitive in the absence of lower gas prices and the kind of stimulus currently being offered by the US government. “As a result, some industries will irrevocably transfer their production to other countries,” he said.