North America Is Making a Killing on Natural Gas Sales – Because of the war in Iran, Americans still pay a premium at the pump—but consumers in the US and Canada pay significantly less than their European and Asian counterparts for natural gas.
US wholesale prices stand at roughly $3 per million British thermal unit (MMBtu) of gas, while Canadians pay about half that, $1.5 per MMBtu. In contrast, natural gas in Europe and Asia has ballooned to as much as $30 per MMBtu.
Oil Tanker. Image Credit: Creative Commons.
Oil fields. Image Credit: Creative Commons.
The Cost of the War in Iran Hits Different in Europe
Europe faces a different kind of energy crisis than the United States, driven by war-related disruptions to natural gas supplies. For the first time since the December 2022 energy crisis, Europe’s benchmark natural gas contract surpassed the €100 per megawatt-hour price threshold. Dan Jørgensen, the European Union’s energy commissioner, cautioned that Europe may face “another energy crisis” as the region heads into what looks like a hard, difficult winter.
Europe’s gas price benchmark, the Dutch TTF contract, recently reached a high of €100.37 per megawatt-hour in trading. Natural gas prices have risen significantly and steadily since the war in Iran broke out; the Dutch TTF contract was trading at only €32 in February this year. The benchmark last rose to above €100 in 2022, roughly when Russia began its invasion of Ukraine.
EU Expanding Energy Partnership with Canada
Because of the shortage, the European Union (EU) is considering several options, including expanding long-term exports of liquefied natural gas (LNG). The two parties discussed this option during the recently concluded EU-Canada summit in Montreal and plan to conduct a feasibility study to see what lies ahead.
Canada and the EU will also work together on energy initiatives and issues such as battery storage, electricity grids, and cybersecurity for energy infrastructures.
“We [Canada and the EU] will assess opportunities for long-term energy connectivity, investment and offtake arrangements that contribute to European energy security and Canadian economic development while supporting our shared climate objectives,” the joint statement from the summit reads.
Generic Oil Tanker Image. Image Credit: Creative Commons.
The US is Raking in Big Bucks from Natural Gas Sales
Since the war in Ukraine broke out in 2022, the US has been Europe’s largest LNG supplier. While industry observers note a bearish outlook for natural gas prices this coming winter season, which is expected to be warmer than usual, the US’ natural gas production was significantly higher this year than in the same period last year. Reports indicate that 2026 output is expected to be higher, while spending is expected to be the same as or below 2025 levels.
In October, Houston, Texas-based LNG firm Cheniere Energy announced that it had entered into long-term sales and purchase agreements with QatarEnergy through the former’s Sabine Pass and Corpus Christi LNG export terminals. Under the agreement, Cheniere Energy will deliver 4 million metric tons of LNG per year to QatarEnergy between early 2030 and 2054. This is notable because QatarEnergy is a major global LNG exporter, and the war in Iran is expected to push worldwide LNG import costs up by at least $39 billion this year.
Trump Seeks to Take Credit for Oil Companies’ Profits Ahead of Midterm Polls
Meanwhile, US President Donald Trump has been quick to tout the massive profits US oil companies have been making despite consumers’ continuing struggle with high gas prices.
At a campaign rally in Perry, Georgia, Trump blasted the “fake headlines.”
“‘President Trump is talking about all the money they’re making while people are suffering at the pump.’ That’ll be the headline,” the president told the crowd. “But I said, ‘I don’t give a damn. I’m gonna say it.’ We’re making a freaking fortune,” he added.
The White House backed up Trump’s remarks, saying US oil producers, such as those in Texas and Louisiana, are reporting increased business because of the sanctions the US has imposed on Iran and its oil exports. US oil producers reported nearly triple profits year over year, earning $62.2 billion in the second quarter of this year, up from $22.3 billion in the same period in 2025.
About the Author: Tim Ramos
Tim Ramos has written for various publications, corporations, and organizations, covering finance, politics, travel, entertainment, and sports in Asia and the U.S. for more than 10 years.
