Europe banned fracking, added carbon taxes and lost cheap Russian gas. Now it pays up to 12 times more for natural gas than the U.S.

America spent years building its shale gas industry. Europe restricted fracking, never developed comparable domestic production and continued relying heavily on imported fuel. Then Russia invaded Ukraine and the cheap pipeline gas Europe had depended on began disappearing. Now the price gap with the U.S. is enormous, putting European factories at a disadvantage against American competitors.

The EU added another layer of cost through its carbon pricing system, charging covered industries and power generators for emissions. Then came another supply problem: disruptions to LNG shipments through the Strait of Hormuz. Europe is competing for imported gas in a global market, while the U.S. has abundant domestic production.

Picture Uber with tax-subsidized, unreliable drivers who only work when it's windy. Then they're cheap
Windy: they take most rides. Reliable drivers sit idle
Calm: they vanish. Reliable drivers must earn a week's pay in hours. Surge pricing
Don't blame the reliable drivers pic.twitter.com/UPOMp8cKRm
— Bjorn Lomborg (@BjornLomborg) November 9, 2026

The September price comparison was already brutal: roughly $25.42 per million BTU in Europe against $2.95 at Henry Hub in the U.S. That’s 8.6 times higher. Some later spot-market comparisons put the gap near 12 times. The exact multiple changes with the date and benchmark, but the underlying problem isn’t going away. European manufacturers have to compete with American companies that can buy the same fuel for a fraction of the price.

Sources
Power prices and plants: Fraunhofer ISE Energy-Charts https://t.co/NDgF2FrK4A https://t.co/MF58dvHdvm https://t.co/HhcWIUunGt
Gas prices: IMF/EIA via FRED https://t.co/ILsq6cNfKZ https://t.co/Rsp7AZ1n4G and https://t.co/OFrlTYtq8S https://t.co/50vi6ByHw9 pic.twitter.com/EfHY3utt0W
— Bjorn Lomborg (@BjornLomborg) November 9, 2026