How Europe Can Win the Energy War With Russia

FN Media Group Presents Oilprice.com Market Commentary

LONDON, March 8, 2024 /PRNewswire/ -- Natural gas is now back in fashion in a very big way and the new mantra is that domestic sources in combination with renewable energy are the only true answer to energy security.  Companies mentioned in this release include:  Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR), Ecopetrol S.A. (NYSE:EC), Devon Energy Corporation (NYSE:DVN), Chesapeake Energy Corporation (NYSE:CHK), Kinder Morgan, Inc. (NYSE:KMI)

In early February, Germany earmarked $16 billion for the construction of four natural gas power plants to complement a renewable energy expansion push. And Austria has recently made its largest natural gas discovery in four decades—enough to increase its domestic production by 50%.

All of this pinpoints Europe as one of the best and most exciting places to be for new energy opportunities, and that means huge opportunities for companies to come in and develop gas fields that were overlooked by the supermajors, who have taken to chasing bigger things in offshore frontiers. 

Below are two companies well-positioned to take advantage of the new energy security atmosphere in Europe: 

#1 MCF Energy (MCF.V; MCFNF.QX)

Small-cap MCF Energy, backed by veteran explorer and producer, Ford Nicholson, is convinced that this is the right atmosphere in which to foster European energy security through domestic natural gas production. 

Germany and Austria are key venues for this, and MCF is tapping into five key prospects several of which have had wells that have produced or are capable of producing gas from ,  three previous discoveries. 

MCF Energy is the first new public company consolidating major exploration projects in  Europe, and it's the first since Russia invaded Ukraine to offer investors an opportunity to help build domestic natural gas resources in Germany and Austria. 

The company is targeting large-scale natural gas exploration and production here, with two drills in the next several months, the first of which has already begun in Austria, in the  Welchau prospect near the Austrian Alps. 

Strategically located only 18 kilometers from a pipeline,  Welchau is adjacent to an up-dip from a discovery that intersected at least a 400-meter gas column previously. According to MCF, all elements are in place here for a significant discovery.