There are many impacts on the energy sector as a result of the recent conflict. If Russian energy supply is halted, European nations will need to rely on alternative energy sources to keep the lights on. Under the Trump administration, the U.S. become the largest exporter of natural gas to Europe; however, due to recent climate constraints and ban on drilling on federal lands, U.S. supply has diminished.
In addition, if the U.S. is no longer able to rely on Russian imports, it will need to rely on energy produced at home. Increased demand from European nations and at home will put a strain on U.S. energy supply and cause prices to rise.
In addition, the war in Ukraine could damage and disrupt existing pipelines in the country. This could put further strain on energy supply to Europe and create even further demand for imported energy from the U.S. With many of the renewable initiatives implemented in Europe over the past decade, the continent does not have a significant amount of fossil fuel production and relies on imports from the U.S. and Russia.