Bloomberg reported that the EU's commitment to purchase $750 billion worth of energy products from the US within three years is almost unrealistic.
According to EU officials, this deal would require the EU to purchase $250 billion worth of natural gas, oil, and nuclear technology including small modular reactors annually. However, "it is hard to imagine how the EU could achieve such ambitious goals in such a short period of time."
Last year, US energy exports to the EU were only $80 billion, and total US energy exports to all countries worldwide were only $330 billion.
Davide Onorato, an economist at TS Lombard, pointed out that this massive energy import figure "doesn't make sense because it is not feasible not only because EU demand cannot grow to such an extent, but also because US exporters do not have the capacity to supply such a quantity of energy."
The report stated that the lack of specific details in the agreement indicates that it is "a pragmatic political agreement rather than a legally binding treaty."
Bloomberg wrote: "The EU has not yet provided a breakdown of specific figures, and it is currently unclear how to convince private companies to buy or sell US oil and natural gas. At the same time, it remains unclear how investments in the US energy industry by Europe will be counted toward the EU's commitment."
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