In a recent article about the natural gas market in Europe, printed on “The Economist”, political and business influences were discussed in the change in gas prices and policies with Russian gas giant, Gazprom. In 2009, Gazprom, a state controlled Russian gas company cut supplies to Ukraine in a dispute over unpaid bills and accusations of theft. At that time, Eastern and Western Europe suffered a sharp spike in gas prices, as it is a main supplier to many countries in the EU. After this incident, European utilities and regulatory committees have been intent on reducing the influence held by the company and long standing contracts between countries. Smaller competitors in varying regions are beginning to compete with the company, which has decades-long contracts with many EU members to sell and purchase gas and oil products. Gazprom ships its oil and gas through many miles of territory from the gas producing regions of Siberia to various European nations. They, Gazprom, are able to produce and transport natural gas cheaply to neighboring countries. Gazprom controls the supply and is able to sell at a high price as they are the main producer of gas and oil, though with up and coming nations like Azerbaijan beginning to take small pieces of the market share. Europe has an increasing demand for oil and natural gas with many technologies depending on it for home heating and electricity production. In the graph shown below, the supply amount of Russian originated gas along with the spot price and realized price is shown – typically Gazprom has been earning 5-6% profit off of sales. The amount of spot price profits have been over the past several years however, becoming lesser. This is due to competitors taking shares of the market from Gazprom, warring factions between Russia and Ukraine and due to pressures from the European committees interested in gas purchases. Europe has to have a supply of natural gas and other oil related products in order to remain afloat; Russia is Europe's largest supplier of natural gas, but the continent has steadily been weaning itself from the eastern product over the past decade. Alternate routes and companies are being sought out, but as contracts between Russia and Europe are in existence for many years to come, the continent is bound somewhat to the neighbor from the east. Whether the Equilibrium quantity in the future can be predicted is up for debate; there is a great amount of civil unrest in Ukraine at present, to a great degree fed from concerns over misappropriated gas between nations. Either side has the ability to control supply if even over petty differences. Equilibrium market prices can spike temporarily but as competitors have been established, as well as high European gas stocks offsetting gas prices. (Tulett, 2014)

References
The Economist (2014) Paying the piper. Retrieved from: http://www.economist.com/news/business/21592639-european-efforts-reduce-russian-state-owned-companys-sway-over-gas-prices-have-been
Tulett, S (2014) Ukraine crisis: Europe’s stored gas high as prices soar. Retrieved from: http://www.bbc.com/news/business-26418664