Energy costs are skyrocketing across Europe as orders rise and the source shrinks in the wake of the novel coronavirus pandemic. During the global economic shutdown, energy production declined dramatically as industries closed, other people stayed indoors, and demand for electric power and fuel plummeted. Now, as the global returns to painting and returns to the “new normal,” the call to power is back with vengeance, but the source of power is there.
Europe’s leading herbal fuels benchmark, the Dutch Title Transfer Facility, reports that costs rose from €16, consistent with megawatt hours earlier this year, to €75 in mid-September, representing a cumulative of more than 360%. warned its citizens that they expect a 40% increase in their spending in the coming weeks and months. Spain agreed to send €100 banknotes to more than 5. 8 million low-income families and sent a letter to Brussels imploring the European Union (EU) to take drastic measures.
Almost part of the EU’s all-herbal fuel imports come from the wonderful white north, making Europe highly dependent on the Kremlin for its energy security. This dependence is largely the explanation for why Europe is now entering an energy crisis, because for herbal fuel it has more, Russia has not increased its exports to the EU. On the one hand, Europe is competing with Asia for limited energy resources, as either continent comes back to life as pandemic restrictions subside. Asia, in search of economic and strategic explanations.
There are many hypotheses that this is a strategic resolution through Putin’s management to push for the opening of the dubious Nord Stream 2 gas pipeline. The allocation has sparked widespread complaints about “perpetuating the bloc’s dependence on fossil fuels and expanding President Putin’s geopolitical influence,” according to Euronews. Opening a new hotspot for much-needed herbal fuel can make Nord Stream 2 a little more attractive.
“If all European companies move to coal, there will be a massive increase in demand for coal that Russia alone cannot meet in such a short time,” said Natasha Tyrina, a research analyst at Wood Mackenzie Ltd. ” It would also require a source from other countries, the United States, for example, but the scenario is similar to the rest. “
As we enter the incredulous winter months, Europe’s energy crisis is about to worsen and its reliance on Russia to keep the lights on will only intensify. Asia will also face an energy crisis this winter, leading the entire world to burn down hotels. more and more coal at a time when the top countries have pledged to do just the opposite. At a time when countries are just beginning a green energy transition and the United Nations is issuing a “code red for humanity” on climate change, this return to coal is an incredibly worrying progression that will be short-lived, as even coal proves inadequate to alleviate the shortage of sources in the coming months.
By Haley Zaremba for Oilprice. com
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