LNG - Blackrock says EU spending 9.1% of GDP on energy more US fossil fuels needed

Blackrock's (BLK) weekly market commentary note focused on the drive for energy security; the asset manager calculates Europe will spend 9.1% of GDP on energy in 2022, the highest share of GDP since 1981:  Blackrock (BLK) sees energy costs increasing inflation and hurting growth in the short term; noting that additional US fossil fuels will be needed to alleviate price pressure. Though the note says, "the drive for energy security should reinforce the transition to net-zero." The difficulty in marrying higher fossil fuel supplies now, with lower supplies in the future, may become apparent as US LNG producers like Tellurian (TELL) look to sign long-term contracts with European customers. Coal production expansion also requires capital investment and visibility on future demand, suggesting US producers like Peabody (BTU), CONSOL (CEIX) and Alliance (ARLP) will be unlikely to expand operations in exchange for 1-2yr supply commitments. As Cheniere (LNG) recently noted, there are

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Blackrock says EU spending 9.1% of GDP on energy, more US fossil fuels needed