On July 27, the European Union (EU) and the United States reached a trade agreement in which the EU pledged to purchase $750 billion worth of energy products from the United States over the next three years. In a new insight, Director of Energy and Environmental Policy Shuting Pomerleau and Trade Policy Analyst Jacob Jensen provide a summary of the U.S.-EU energy deal, review the current energy market landscapes and mechanisms between the United States and EU, and conclude that it is very unlikely the EU will be able to fulfill the enormous energy deal target.

An excerpt:

Notably, the United States exported roughly $70 billion worth of energy products to the EU in 2024, and projected U.S. petroleum and natural gas exports to the bloc are about $207 billion in total for 2026–2028, meaning the EU would have to more than triple its current energy imports from the United States annually to fulfill the target.

Read the analysis.