Tecnología

partners Operation Underground Railroad OUR//
A Very Predictable Global Energy Crisis

Years of underinvestment as coal turned into humankind’s greatest mistake are now bearing fruit, and this fruit is a polluting one. But it was bound to happen. Once you demonize a commodity that has played an essential role in the progress of civilization for more than a century and start pouring billions into ensuring this demonization leads to the demise of that commodity, success is only a matter of time. But in the meantime, it might be a good idea to ensure you have an alternative—and this is the really important part—that can perform on par with the demonized commodity

Home Oil Prices Rig Count Energy Energy-General Oil Prices Crude Oil Heating Oil Gas Prices Natural Gas Coal Company News Interviews Alternative Energy Nuclear Power Solar Energy Hydroelectric Renewable Energy Geothermal Energy Wind Power Fuel Cells Tidal Energy Biofuels Environment Global Warming Oil Spills Geopolitics Africa Asia Europe Indonesia International Middle East North America South America Video Breaking News Premium Articles Community Trade Now My Account Latest Discussions Energy General Oil Stocks & Prices Other Energy Topics Trade Now Get Exclusive Intel All Prices OPEC Blends Canadian Blends U.S. Blends WTI Crude • 10 mins 77.11 -0.32 -0.41% Brent Crude • 2 hours 81.08 -1.48 -1.79% Natural Gas • 10 mins 5.774 +0.099 +1.74% Heating Oil • 18 mins 2.446 +0.004 +0.16% Gasoline • 23 mins 2.312 +0.004 +0.17% Louisiana Light • 2 days 80.42 +1.39 +1.76% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Louisiana Light • 2 days 80.42 +1.39 +1.76% Bonny Light • 2 days 82.08 +1.35 +1.67% Opec Basket • 2 days 80.43 +2.18 +2.79% Mars US • 42 mins 77.43 +0.40 +0.52% Gasoline • 23 mins 2.312 +0.004 +0.17% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Marine • 2 days 79.38 +2.53 +3.29% Murban • 2 days 80.41 +2.28 +2.92% Iran Heavy • 2 days 78.39 +1.80 +2.35% Basra Light • 2 days 81.09 +1.46 +1.83% Saharan Blend • 2 days 83.01 +1.48 +1.82% Bonny Light • 2 days 82.08 +1.35 +1.67% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Bonny Light • 2 days 82.08 +1.35 +1.67% Girassol • 2 days 82.81 +1.43 +1.76% Opec Basket • 2 days 80.43 +2.18 +2.79% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Canadian Crude Index • 7 days 62.66 +0.20 +0.32% Western Canadian Select • 2 hours 66.43 +1.06 +1.62% Canadian Condensate • 18 hours 77.93 +1.31 +1.71% Premium Synthetic • 18 hours 79.33 +1.31 +1.68% Sweet Crude • 2 hours 76.93 +1.51 +2.00% Peace Sour • 2 hours 74.83 +1.56 +2.13% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Peace Sour • 2 hours 74.83 +1.56 +2.13% Light Sour Blend • 2 hours 76.93 +1.41 +1.87% Syncrude Sweet Premium • 2 hours 78.78 +1.61 +2.09% Central Alberta • 2 hours 75.03 +1.71 +2.33% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

Louisiana Light • 2 days 80.42 +1.39 +1.76% Domestic Swt. @ Cushing • 19 hours 74.00 -1.50 -1.99% Giddings • 19 hours 67.75 -1.50 -2.17% ANS West Coast • 3 days 81.49 +1.87 +2.35% West Texas Sour • 19 hours 71.38 -1.50 -2.06% Eagle Ford • 19 hours 75.33 -1.50 -1.95% Start Trading CFDs Over 2,200 Different Instruments Click Here for 150+ Global Oil Prices Eagle Ford • 19 hours 75.33 -1.50 -1.95% Oklahoma Sweet • 19 hours 74.00 -1.50 -1.99% Kansas Common • 2 days 69.25 +1.50 +2.21% Buena Vista • 2 days 84.87 +1.31 +1.57% Click Here for 150+ Global Oil Prices

Start Trading CFDs Over 2,200 Different Instruments

Click Here for 150+ Global Oil Prices

1D 1M 3M 1Y All Charts Products Discussion Headlines 2 hours Energy-Starved China Forced To Accept Australian Coal 3 hours U.S. Energy Sector Is Vulnerable To Ransomware Attacks 5 hours India Is Facing A Serious Coal Crisis 7 hours Saudi Oil Giant Breathes Down Apple’s Neck As World‘s Most Valuable Company 8 hours IEA: Low-Carbon Hydrogen Needs Major Cost Cuts 9 hours India’s Coal Crunch Could Drag On For 6 Months 1 day Second Surprise Crude Build Caps Oil Price Gains 1 day Line 5 Oil Pipeline Battle Goes International 1 day U.S. Gasoline Prices Rise To Highest Level Since October 2014 1 day OPEC+ Raises November Oil Production Quota To 39.7 Million Bpd 1 day China Energy Crunch Forces Beijing To Buy Australian Coal 1 day Nord Stream 2 Operator Begins Gas Tests 1 day India’s Coal Stocks Are Critically Low Amid Global Power Crunch  2 days Norway’s Planned Luxury EV Tax Could Slow Sales Of High-End Models 2 days UK Set To Target Entirely Green Electricity Generation By 2035 2 days UK Calls On Army To Ease Fuel Crisis 2 days World‘s Largest Oil Trader: OPEC+ Continues To Call The Shots On Oil Prices 2 days Aramco Mega Deal Boosts Saudi Foreign Investment To Record In Q2 2 days Saudi Arabia To Boost Oil Production Capacity To 13 Million Bpd in 2027 2 days Oil At $100 Unsustainable: Iraqi Minister 5 days Putin Looks To Limit Wealth Fund Spending 5 days Surging Energy Prices Push Eurozone Inflation To Highest Since 2008 5 days Natural Gas Makes Up Larger Share Of U.S. Oil Producers’ Revenues 5 days German Coal Plant Runs Completely Out Of Coal 5 days European Gas Prices Hit Record High 6 days Billionaire Oil Trading Veteran Bets Big On Batteries 6 days Libya Looks To Attract U.S. Oil Companies 6 days “At All Costs”: China Pulls Out All Stops To Prevent Winter Energy Crisis 6 days Russia Has Massive Hydropower And Wind Energy Potential 6 days Study: Mexico Has 22 Terawatts Of Green Hydrogen Potential 6 days Value Of OPEC’s Oil Exports Plunged By $240 Billion In 2020 6 days UK Wants China Out Of Nuclear Power Project 6 days Commerce Department Delays Critical Decision On Solar Panel Tariffs 7 days China Further Restricts Power Use Amid Widening Energy Crisis 7 days Enbridge To Start New Line 3 Oil Pipeline On October 1st 7 days Rich Countries Could Help Finance South Africa’s Coal Exit 7 days China’s Power Crisis Hits Manufacturing 7 days Oil Tanker Market Set For Another Year Of Disappointing Profits 7 days U.S. Asks China To Reduce Oil Imports From Iran 7 days BP Expects Oil Demand To Return To Pre-Crisis Level In Autumn 2022 4 minutes Europeans and Americans are beginning to see the results of depending on renewables. 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing? 13 minutes NordStream2 3 hours GREEN NEW DEAL = BLIZZARD OF LIES 2 hours Monday 9/13 – “High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year” by Irina Slav 28 mins Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done! 1 day Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed. 3 hours This is why pipelines have bad press. 2 days Corporations are Falling into the Woke Trap. Oil and Gas Companies are Included. 5 hours Poland Expands LNG Powered Trucking and Fueling Stations 2 days Big Bounce: Russian gas amid market tightness – new report by Oxford Institute for Energy Studies Sell Buy Sell Buy Sell Buy Sell Buy Sell Buy Breaking News: Energy-Starved China Forced To Accept Australian Coal

Find us on:

The Real Reason OPEC+ Refused To Boost Production Further The refusal by OPEC+ to…

Gazprom: We’re Not Withholding Gas To Europe Russian gas giant Gazprom dismisses…

Gazprom: Russia Has Gas Reserves For More Than A Century Russia’s natural gas reserves will…

Home Energy Natural Gas Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

Operation Underground Railroad

More Info

Share Facebook Twitter Linkedin Reddit Premium Content A Very Predictable Global Energy Crisis By Irina Slav – Oct 06, 2021, 7:00 PM CDT When gas prices in Europe started rising faster and faster last month as the continent prepared for winter and found out it was not the only one, gas suddenly became important Italian Energy Exec: “It could get very ugly unless we act quickly to try to fill every inch of storage,” It is, in fact, entirely accurate and fair to explain the high energy prices as a result of clean energy transition policies Join Our Community Gas prices in Europe are breaking record after record. The UK is facing supply shortages reminiscent of the late 1970s winter of discontent. Chinese factories are shutting down because of power shortages, and the outlook is grim. In fact, it may be the first crisis of many.

When gas prices in Europe started rising faster and faster last month as the continent prepared for winter and found out it was not the only one, gas suddenly became important. That’s after being excluded from the list of low-carbon energy sources and after the EU’s green transition chief Frans Timmermans said gas had no place in the transition. It now appears Timmermans and his fellow Brussels bureaucrats could not have been more wrong.

For years Europe has been retiring coal plants and building solar and wind farms as it strived to become the greenest continent on earth and lead the energy transition on the premise that emissions of carbon dioxide are the planet’s single biggest problem because they lead to unfavorable climate changes. This has been coupled with investment declines in oil and gas production, as this only made sense. Now, the EU has got the first bill for its low-carbon feast.

“It could get very ugly unless we act quickly to try to fill every inch of storage,” Marco Alvera, chief executive of Italian energy infrastructure company Snam, told Bloomberg last month. “You can survive a week without electricity, but you can’t survive without gas.”

This last sentence is important. The green transition plans of the EU—and all other countries with a green agenda, really—tend to assume that the only way to a cleaner energy future is through total electrification. And they are saying it will be cheap and easy, or, in the now immortalized words of UK’s Prime Minister Boris Johnson quoting the opposite of Kermit the Frog, “It is easy to be green.” Johnson also said it was possible for the UK to go 100-percent green (plus nuclear) by 2035.

China‘s ruling elite must have also thought that going green would be easy as they imposed stricter emission rules on industrial producers and utilities. And then had to issue a “Whatever it takes” order to make sure utilities would have enough fossil fuel supplies for the winter to avoid outages. The order, it appears, was too late, and factories are already shutting down as coal supply remains tight and will remain tight for the observable future.

Years of underinvestment as coal turned into humankind’s greatest mistake are now bearing fruit, and this fruit is a polluting one. But it was bound to happen. Once you demonize a commodity that has played an essential role in the progress of civilization for more than a century and start pouring billions into ensuring this demonization leads to the demise of that commodity, success is only a matter of time. But in the meantime, it might be a good idea to ensure you have an alternative—and this is the really important part—that can perform on par with the demonized commodity.

The energy crunch has shown in what some would say is an unequivocal way that wind and solar power do not perform on par with coal, oil, or gas. They can’t. They depend on the weather. But wind and solar were what the EU, China, and the United States rushed into to replace fossil fuels, and now we are all paying the first installment on that rushed renewables purchase.

“It is a cautionary message about how complex the energy transition is going to be,” Daniel Yergin told Bloomberg this week, referring to the energy crunch. Bloomberg, by the way, has been at the forefront of the energy transition coverage, producing a lot of praise for increasingly cheap wind and solar. Apparently, however, they are still not cheap enough or rather, not reliable enough to become cheap enough. But nobody is talking about this.

“It is inaccurate and unfair to explain these high energy prices as a result of clean energy transition policies. This is wrong,” said the International Energy Agency’s Fatih Birol, echoing a sentiment shared by all green governments. The reason for the sentiment has never been explained, but it might come down to the fact that so much money has been spent on the energy transition already and so much more is slated to be spent, that it would be embarrassing to admit the approach to the transition was sub-optimal.

It is, in fact, entirely accurate and fair to explain the high energy prices as a result of clean energy transition policies. It was these policies that discouraged investment in new oil, gas, and coal production. It was also these policies that led to the shutdowns of coal and nuclear plants that reduced generating capacity that simply cannot be replaced by wind or solar on a MW for MW basis because wind and solar do not generate power continuously. And it is these policies, in Europe, China, North America, and elsewhere that, unless revised to reflect reality a bit better, will condemn billions of people to blackouts, energy shortages, and higher electricity bills.

By Irina Slav For Oilprice.com

More Top Reads from Oilprice.com:

WTI Crude Oil Price Hits 7-Year High

The Real Reason OPEC+ Refused To Boost Production Further

Natural Gas Stocks To Watch As The Energy Crisis Goes Global Download The Free Oilprice App Today.

Operation Underground Railroad USA