Several European companies are starting to halt operations due to the cost of electricity. For example, the Norwegian company Yara, the largest fertilizer producer in the world, is cutting production by 50%, and several other fertilizer producers in the UK and Poland are following. European governments are to start mandating the shutdown of certain operations too. These could eventually include forcing firms to use crude oil instead of gas, to add to the existing raft of measures targeting heating/cooling in homes/businesses/public buildings, reducing leisure activities such as heated pools/ski centers, or shifting hours of operation to times with less total load.

Given that the cost of gasoline, diesel, natural gas, and crude oil is cheaper in the US and will remain so for the long term, what industrial operations (and companies) can we expect to move from Europe to the US? The European economy is full of companies that import raw commodities (agriculture, energy, metals) and export chemicals/vehicles/heavy machinery.

Why will energy prices remain structurally lower in the US?

• The EU is much more likely to institute windfall profit taxes than the US, which will heavily discourage future energy production

• The US has more raw resources (food, energy, etc.) available for use

• Lower regulations/taxes in the US than Europe