Global energy crisis (2021–2023): Difference between revisions
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Europe has been historically leading with regard to global climate policy, pledging to cut emissions to at least 55% below 1990 levels in the next 8 years. But [[International sanctions during the Russo-Ukrainian War|sanctions on Russia]] are crushing global supplies of fossil fuels with drastic price increases. Russia's invasion of Ukraine in 2022 risks unravelling decades of hard work to reduce emissions on the European continent. After a long period of optimistic projections on reducing Europe's [[carbon footprint]], governments there aren't keeping anything off the table, including reopening coal-fired power plants or upping oil imports, as well as prolonging the phase-out for nuclear energy.<ref>{{Cite journal|date=2022-07-05|title=Europe must not backslide on climate action despite war in Ukraine|url=https://www.nature.com/articles/d41586-022-01820-x|journal=Nature|language=en|volume=607|issue=7917|pages=8|doi=10.1038/d41586-022-01820-x|pmid=35790829 |bibcode=2022Natur.607....8. |s2cid=250312094 }}</ref> |
Europe has been historically leading with regard to global climate policy, pledging to cut emissions to at least 55% below 1990 levels in the next 8 years. But [[International sanctions during the Russo-Ukrainian War|sanctions on Russia]] are crushing global supplies of fossil fuels with drastic price increases. Russia's invasion of Ukraine in 2022 risks unravelling decades of hard work to reduce emissions on the European continent. After a long period of optimistic projections on reducing Europe's [[carbon footprint]], governments there aren't keeping anything off the table, including reopening coal-fired power plants or upping oil imports, as well as prolonging the phase-out for nuclear energy.<ref>{{Cite journal|date=2022-07-05|title=Europe must not backslide on climate action despite war in Ukraine|url=https://www.nature.com/articles/d41586-022-01820-x|journal=Nature|language=en|volume=607|issue=7917|pages=8|doi=10.1038/d41586-022-01820-x|pmid=35790829 |bibcode=2022Natur.607....8. |s2cid=250312094 }}</ref> |
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== Effects by location == |
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=== Africa === |
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==== Cameroon ==== |
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Cameroon has been hit by fuel shortages in July as most fuel stations run out of diesel and have to start rationing. Fuel subsidies cost the Cameroonian government over $1.2 billion a year and Yaounde has come under pressure from the IMF to stop them.<ref>{{cite web | url=https://www.africanews.com/2022/07/22/cameroonians-queue-for-fuel-as-shortages-hit-the-capital | title=Cameroonians queue for fuel as shortages hit the capital | date=22 July 2022 }}</ref> |
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==== Central African Republic ==== |
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Fuel shortage and rising food prices exacerbated humanitarian assistance in the country, with some humanitarian flights having been either suspended or postponed due to high fuel price.<ref>{{cite web | url=https://reliefweb.int/report/central-african-republic/central-african-republic-alarming-fuel-shortage-exacerbates-worst-levels-humanitarian-needs-2015 | title=Central African Republic: Alarming fuel shortage exacerbates worst levels of humanitarian needs since 2015 – Central African Republic | ReliefWeb }}</ref> |
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==== Ethiopia ==== |
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In [[Ethiopia]], the government removed fuel subsidies in July, causing diesel price to increase by 38%. Motorists in the capital Addis Ababa were seen waiting in long queues for up to eight hours to refill.<ref>{{cite news |url=https://www.bloomberg.com/news/articles/2022-07-05/drivers-wait-eight-hours-to-refill-in-ethiopia-amid-fuel-crisis |title=Drivers Wait Eight Hours to Refill in Ethiopia's Fuel Crisis |first=Fasika |last=Tadesse |orig-date=5 July 2022 |date=6 July 2022 |work=[[Bloomberg News]]}}</ref> Ethiopia's government was urged to lift restrictions on fuel supplies to the [[Tigray War|war]]-torn [[Tigray Region]].<ref>{{cite news |title=EU urges Ethiopia to lift fuel restrictions to Tigray |url=https://www.africanews.com/2022/06/22/eu-urges-ethiopia-to-lift-fuel-restrictions-to-tigray/ |work=Africanews |date=22 June 2022}}</ref> |
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==== Kenya ==== |
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In Kenya, a row between oil companies and the government over subsidy payments has resulted in reduced imports and a fuel crunch. Hours-long queues and strict rationing at petrol stations are reported.<ref>{{cite web | url=https://www.africanews.com/2022/04/05/drivers-queue-for-hours-as-kenya-reels-from-fuel-shortage | title=Drivers queue for hours as Kenya reels from fuel shortage | date=5 April 2022 }}</ref> |
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==== Nigeria ==== |
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Fuel crisis exacerbated by the Russian-Ukraine conflict has caused prices for importing fuel to go up by more than 100%. Despite being an oil exporting country and Africa's [[Petroleum industry in Nigeria|biggest oil producer]],<ref>{{cite news |title=Oil rich, electricity poor. What will it take to solve Nigeria's energy crisis? |url=https://www.africanews.com/2022/03/23/oil-rich-electricity-poor-what-will-it-take-to-solve-nigeria-s-energy-crisis/ |work=[[Africanews]] |date=25 March 2022}}</ref> Nigeria imports almost all of its fuel since its refineries fail to cover the country's needs. Long lines up to eight hours are reported in the capital Lagos.<ref>{{cite web | url=https://www.africanews.com/2022/06/25/nigeria-continues-to-grapple-with-fuel-shortages-price-surges | title=Nigeria continues to grapple with fuel shortages, price surges | date=25 June 2022 }}</ref> The lack of A1 jet fuel has caused flights to be cancelled with passengers stranded in Abuja.<ref>{{cite web | url=https://thewhistler.ng/hundreds-of-passengers-stranded-in-abuja-airport-as-scarcity-of-jet-a1-fuel-bites-harder | title=Hundreds of Passengers Stranded in Abuja Airport as Scarcity of Jet A1 Fuel Bites Harder | date=24 July 2022 }}</ref> |
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==== Sierra Leone ==== |
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{{Seealso|2022 Sierra Leone protests}} |
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In [[Sierra Leone]], protests triggered by rising cost of living and energy broke out in August. At least 21 civilians and 6 police officers were reported killed.<ref>{{Cite web |date=2022-08-10 |title=Deadly anti-government protests erupt in Sierra Leone |url=https://apnews.com/article/africa-west-sierra-leone-julius-maada-bio-freetown-fb3b62ec79c0d7517850092b02e4edb8 |access-date=2022-08-12 |website=AP NEWS |language=en}}</ref> |
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=== Asia === |
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==== Bangladesh ==== |
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In Bangladesh, street protests have erupted across Bangladesh in August over fuel price hikes, with price of petrol had increased by nearly 52 percent.<ref>[Street protests erupt across Bangladesh over fuel price hikes https://www.wsws.org/en/articles/2022/08/15/tyeo-a15.html]</ref> |
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==== China ==== |
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[[China]] is facing its worst energy crisis in decades, due in part to a record heatwave, with droughts drying up water reservoirs and impacting hydropower stations.<ref>{{cite magazine |title=Will China's Energy Crisis Make It More Reluctant to Fight Climate Change? |url=https://time.com/6102765/china-energy-coal-climate/ |magazine=Time |date=30 September 2021}}</ref><ref>{{Cite web |last=CNN |first=Analysis by Nectar Gan |title=Analysis: China's worst heat wave on record is crippling power supplies. How it reacts will impact us all |url=https://www.cnn.com/2022/08/26/china/china-sichuan-power-crunch-climate-change-mic-intl-hnk/index.html |access-date=2022-08-26 |website=CNN|date=26 August 2022 }}</ref> ''The Guardian'' reported that "Companies in the industrial heartlands have been told to limit consumption, residents have been subjected to rolling blackouts, and annual light shows have been cancelled."<ref>{{cite news |title=Global energy crisis: how key countries are responding |url=https://www.theguardian.com/business/2021/oct/12/global-energy-crisis-how-key-countries-are-responding |work=The Guardian |date=12 October 2021}}</ref> |
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Prices for industrial metals such as [[copper]], [[zinc]] and [[aluminum]] have soared to record levels as energy shortages in China drive up costs for electricity and natural gas.<ref>{{cite news |title=METALS-Copper heads for best week since 2016, zinc rockets |url=https://www.reuters.com/article/global-metals/metals-energy-crisis-pushes-copper-towards-best-week-since-2016-idINL1N2RB0TB |work=Reuters |date=15 October 2021}}</ref><ref>{{cite news |title=Base Metals Surge as Energy Crisis Knocks Out More Supply |url=https://www.bloomberg.com/news/articles/2021-10-15/metals-waver-near-record-as-supply-cuts-fuel-inflation-concerns |work=Bloomberg |date=15 October 2021}}</ref> The price of aluminum has reached a 13-year high.<ref>{{cite news |title=Aluminum prices hit 13-year high amid power shortage in China |url=https://asia.nikkei.com/Business/Markets/Commodities/Aluminum-prices-hit-13-year-high-amid-power-shortage-in-China |work=Nikkei Asia |date=22 September 2021}}</ref><ref>{{cite news |title=Global Energy Crisis Piles Pressure on Aluminum Supply |url=https://www.bloomberg.com/news/articles/2021-10-11/pressure-is-mounting-for-the-metal-dubbed-solid-electricity |work=Bloomberg |date=11 October 2021}}</ref> |
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The energy crisis has intensified pressures on China ahead of the [[2022 Winter Olympics]].<ref>{{cite news |title=Analysis: China's green Winter Olympics 2022 to boost natural gas demand |url=https://www.spglobal.com/platts/en/market-insights/latest-news/energy-transition/091521-analysis-chinas-green-winter-olympics-2022-to-boost-natural-gas-demand |work=[[S&P Global]] |date=15 September 2021}}</ref><ref>{{cite news |title=How China's energy crisis has sent commodity markets reeling |url=https://asia.nikkei.com/Spotlight/Market-Spotlight/How-China-s-energy-crisis-has-sent-commodity-markets-reeling |work=Nikkei Asia |date=18 October 2021}}</ref> Al-Jazeera reported that "China's energy crisis is partially of its own making as [[General Secretary of the Chinese Communist Party|CCP general secretary]] [[Xi Jinping]] tries to ensure blue skies at the Winter Olympics in Beijing next February and show the international community he's serious about [[Low-carbon economy|de-carbonizing]] the economy."<ref>{{cite news |title=The next shock in the pipeline for China's economy: energy crunch |url=https://www.aljazeera.com/economy/2021/9/27/the-next-shock-in-the-pipeline-for-chinas-economy-energy-crunch |work=[[Al Jazeera]] |date=27 September 2021}}</ref> |
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The energy crunch in Europe and Asia has allowed the [[Kremlin]] to forge its energy connections with China as Gazprom announced another gas pipeline with [[China]], [[Power of Siberia 2]], after the finalization of the existing [[Power of Siberia]] in 2019. The second project between Moscow and Beijing, planned to deliver gas from the [[Yamal Peninsula]], is projected to be signed off in late 2022.<ref>{{Cite news|date=2021-11-18|title=Russia's energy deals with China may backfire on the Kremlin|work=Financial Times|url=https://www.ft.com/content/2b699edc-aa18-4582-aaca-58e5e31b395d|access-date=2022-10-01}}</ref> According to ship-tracking data, China spent almost US$19 billion on Russian oil, gas and coal in the first half of 2022, nearly twice the amount than a year earlier. In July 2022, Laura Myllyvirta of [[Centre for Research on Energy and Clean Air]] told [[Al Jazeera]] "China is already buying essentially everything that Russia can export via pipelines and Pacific ports."<ref name="auto">{{Cite web|title=Russia pockets $24bn from selling energy to China, India|url=https://www.aljazeera.com/economy/2022/7/6/russia-pockets-24b-from-selling-energy-to-china-india|access-date=2022-10-01|website=www.aljazeera.com|language=en}}</ref> |
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==== India ==== |
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[[India]] experienced power outages in [[Uttar Pradesh]], [[Rajasthan]], [[Punjab, India|Punjab]], [[Jharkhand]], [[Maharashtra]], and [[Kerala]] as the country's coal stockpiles at power plants were dangerously low.<ref>{{cite news |title=India States Hit by Power Outages as Coal Supply Still Tight |url=https://www.bloomberg.com/news/articles/2021-10-11/indian-states-hit-by-power-blackouts-as-coal-supply-still-tight |work=Bloomberg |date=11 October 2021}}</ref><ref>{{cite news |title=China isn't the only huge Asian economy with a coal shortage now |url=https://www.cnbc.com/2021/10/12/coal-shortage-india-could-soon-be-on-the-brink-of-a-power-crisis.html |work=CNBC |date=12 October 2021}}</ref> In order to mitigate the outage, coal supplies were re-routed from industries to power plants. |
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In October 2021, the crisis reached its peak, with 1/3 of coal power plants having less than three days of supply.<ref>{{cite news |title=India's Oct power demand rises 4.1%, coal-fired output up 1.8% |url=https://www.reuters.com/world/india/indias-oct-power-demand-rises-41-coal-fired-output-up-18-2021-11-01/ |work=Reuters |date=1 November 2021}}</ref> A complete power failure was averted as [[Coal India]], which supplies 80% of coal output, ramped up coal production. |
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In 2022, India was in a similar situation as China. The country increased its energy reliance with Russia in the aftermath of the [[2022 Russian invasion of Ukraine]], as imports for Russian liquid gas, crude oil and coal tripled to almost $5 billion.<ref name="auto" /> |
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==== Laos ==== |
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In 2022, Laos was hit by an economic crisis caused by rising debt, fuel shortage and rising inflation. Long queues formed at gas stations in Vientiane as motorists scrambled for fuel.<ref>{{cite news |title=A fuel shortage is driving Laos — which is on the brink of a debt default — to seek out cheap Russian oil |url=https://markets.businessinsider.com/news/commodities/energy-fuel-shortage-laos-buy-cheap-russian-oil-debt-default-2022-7 |work=Business Insider |date=7 July 2022}}</ref> |
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==== South Korea ==== |
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Diesel vehicle drivers had difficulties buying [[diesel exhaust fluid]] in South Korea.<ref>{{cite news |title=Urea shortage threatens South Korea's transport, energy industries |url=https://www.reuters.com/business/energy/urea-shortage-threatens-south-koreas-transport-energy-industries-2021-11-09/ |work=Reuters |date=9 November 2021}}</ref><ref>{{cite news |title=ANALYSIS: Shortage of diesel exhaust fluid could halt South Korea's automotive fuel demand recovery |url=https://www.spglobal.com/platts/en/market-insights/latest-news/oil/111021-analysis-shortage-of-diesel-exhaust-fluid-could-halt-south-koreas-automotive-fuel-demand-recovery |work=S&P Global |date=10 November 2021}}</ref> Despite sanctions against the [[Russian Federation]], SK signed a 3 trillion ($2.25 billion) deal with a Russian state-run nuclear energy company to provide components for Egypt's first nuclear power plant, although it made an awful impression on its Western allies.<ref>{{Cite web|date=2022-08-26|title=World Of Trade: South Korea Signs $2.25 Billion Deal With Russia Nuclear Company| Countercurrents|url=https://countercurrents.org/2022/08/world-of-trade-south-korea-signs-2-25-billion-deal-with-russia-nuclear-company/|access-date=2022-10-01|website=countercurrents.org|language=en-US}}</ref> |
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==== Sri Lanka ==== |
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{{Main|2022 Sri Lankan protests}} |
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High fuel prices and the [[Sri Lankan economic crisis]] resulted in electricity, fuel and cooking gas shortages in the country. Long queues formed in front of gas stations<ref>{{Cite web |last=Ellis-Petersen |first=Hannah |date=2022-03-02 |title=Milk sachets, chicken, fuel: basics slip out of reach for Sri Lankans as economic crisis bites |url=https://www.theguardian.com/world/2022/mar/02/milk-sachets-chicken-fuel-basics-slip-out-of-reach-for-sri-lankans-as-economic-crisis-bites |access-date=2022-04-03 |work=The Guardian}}</ref> as government suspended fuel sales to non-essential vehicles.<ref>{{cite news |url=https://www.bbc.com/news/business-61961821 |title=Non-essential petrol sales halted for two weeks in Sri Lanka |date=28 June 2022 |publisher=BBC News }}</ref> Discontent lead to protests which ousted president [[Gotabaya Rajapaksa]]. |
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=== Oceania === |
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==== Australia ==== |
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Australia's east coast faced very high gas and electricity prices and low reserve capacity in mid-2022, due to a combination of factors, including high prices for gas (which is exported via [[LNG]] terminals in Queensland and thus local prices depend on the global LNG market) and thermal coal, constrained production and transportation due to flooding in coal producing regions,<ref>{{Cite web |last=Leitch |first=David |date=2022-06-03 |title=La Niña's big hit on coal is forgotten factor behind Australia's energy crisis |url=https://reneweconomy.com.au/la-ninas-big-hit-on-coal-is-forgotten-factor-behind-australias-energy-crisis/ |access-date=2022-07-23 |website=RenewEconomy |language=en-AU}}</ref> and a series of outages in coal-fired power plants. This led the Australian energy market operator [[AEMO]] to temporarily suspend operation of the east coast electricity market for the first time since its inception, and take direct control of generation and dispatch.<ref>{{Cite web |last=Packham |first=Colin |date=2022-06-17 |title=How the energy market broke and forced AEMO's hand |url=https://www.afr.com/companies/energy/how-the-energy-market-broke-and-forced-aemo-s-hand-20220617-p5auim |url-status=live |archive-url=https://web.archive.org/web/20220723040229/https://www.afr.com/companies/energy/how-the-energy-market-broke-and-forced-aemo-s-hand-20220617-p5auim |archive-date=2022-07-23 |access-date=2022-07-23 |website=[[Australian Financial Review]]}}</ref> AEMO also intervened in the local gas market after a large gas storage facility in Victoria became increasingly depleted due to the "unprecedented demand".<ref>{{Cite news |date=2022-07-19 |title=Energy market operator intervenes to prevent gas shortage as Victoria's reserves fall |language=en-AU |work=ABC News |url=https://www.abc.net.au/news/2022-07-19/aemo-warning-of-possible-gas-shortage-in-victoria/101249632 |access-date=2022-07-23}}</ref> |
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=== Europe === |
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{{See also|2022 Russia–EU gas dispute}} |
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[[File:TTF natural gas.webp|thumb|370px|{{legend|#C0136B|outline=#970E53|Europe TTF natural gas}}]] |
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[[File:European Countries Dependent On Russian Natural Gas.webp|thumb|370px|right|European Countries Dependence On Russian Natural Gas<ref>{{Cite web|url=https://www.npr.org/2022/02/09/1079338002/russia-ukraine-europe-gas-nordstream2-energy|title = Explaining why natural gas plays such a big role in the Russia-Ukraine crisis|website = NPR|date = 9 February 2022|last1 = Sullivan|first1 = Becky}}</ref>]] |
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Due to a combination of unfavourable conditions, which involved soaring demand of [[natural gas]], its diminished supply from U.S., Norway and Russia to the European markets, less power generation by [[renewable energy]] sources such as wind, water and solar energy, and a cold winter that left European gas reservoirs depleted, Europe faced steep increases in gas prices in 2021.<ref>{{cite news |title=Energy crisis: The blame game has begun – but are some of the claims just hot air? |url=https://news.sky.com/story/energy-crisis-the-blame-game-has-begun-but-are-some-of-the-claims-just-hot-air-12413485 |work=Sky News |date=22 September 2021}}</ref><ref>{{cite news |title=Europe's Power Crisis Moves North as Water Shortage Persists |url=https://www.bloomberg.com/news/articles/2021-10-03/europe-s-power-crisis-is-moving-north-as-water-shortage-worsens |work=Bloomberg |date=3 October 2021}}</ref><ref>{{cite news |title=Russia says it could boost supplies to ease Europe gas costs |url=https://apnews.com/article/business-vladimir-putin-europe-russia-moscow-e88f22bea390917eb1b78affaf177289 |work=Associated Press |date=7 October 2021}}</ref><ref>{{cite news |title=It is tempting to blame foreigners for Europe's gas crisis: The main culprit is closer to home |url=https://www.economist.com/europe/2021/10/16/it-is-tempting-to-blame-foreigners-for-europes-gas-crisis |newspaper=[[The Economist]] |date=16 October 2021}}</ref> Russia has fully supplied on all long-term contracts, but has not supplied extra gas on the [[spot market]];<ref name=bbc-20211014 /> in the first half of 2021, Russia supplied over 3 billion m³/week (almost half of EU's imports), and around 2.3 billion m³/week in the second half of 2021.<ref name="op2022-02-17">{{cite web |title=Can Norwegian Natural Gas Solve Europe's Energy Crisis? |url=https://oilprice.com/Energy/Natural-Gas/Can-Norwegian-Natural-Gas-Solve-Europes-Energy-Crisis.html |website=OilPrice.com |archive-url= https://web.archive.org/web/20220220093556/https://oilprice.com/Energy/Natural-Gas/Can-Norwegian-Natural-Gas-Solve-Europes-Energy-Crisis.html |archive-date=20 February 2022 |language=en |date=17 February 2022 |url-status=live}}</ref> In October 2021, the [[Economist Intelligence Unit]] reported that Russia had limited extra gas export capacity because of its own high domestic demands with production near its peak.<ref name=bbc-20211014>{{cite news |url=https://www.bbc.co.uk/news/58888451 |title=Europe gas prices: How far is Russia responsible? |last=Horton |first=Jake |work=BBC News |date=14 October 2021}}</ref><ref name=bl-20210903>{{cite news |url=https://www.bloomberg.com/news/articles/2021-09-03/russia-has-a-gas-problem-nearly-the-size-of-exports-to-europe |title=Russia Has a Gas Problem Nearly the Size of Exports to Europe |last=Mazneva |first=Elena |publisher=Bloomberg |date=3 September 2021 }}</ref> On 27 October 2021, Russian President Vladimir Putin authorised state-controlled energy giant [[Gazprom]] to start pumping extra natural gas into European [[Natural gas storage|gas storage sites]] once Russia finishes filling its own gas inventories, which may happen by November 8.<ref name="Euronews">{{cite news |title=Russia seen starting to fill Europe's gas storage after Nov. 8 |url=https://www.euronews.com/2021/10/28/europe-s-energy-crisis-prices-drop-after-putin-orders-gazprom-to-fill-eu-stocks |work=Euronews |date=27 October 2021}}</ref><ref>{{cite news |title=Putin Orders More Gas for Europe Next Month, Sending Down Price |url=https://www.bloomberg.com/news/articles/2021-10-27/putin-tells-gazprom-to-focus-on-filling-eu-storage-from-nov-8 |work=Bloomberg |date=27 October 2021}}</ref> |
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The [[Groningen gas field]] in the Netherlands, Europe's largest natural gas field, will stop production between 2025 and 2028.<ref>{{cite web|title=Groningers teleurgesteld over ontbreken einddatum gaswinning|url=https://nos.nl/artikel/2399094-groningers-teleurgesteld-over-ontbreken-einddatum-gaswinning|url-status=live|work=[[NOS Nieuws]]|archive-url=https://web.archive.org/web/20210924192313/https://nos.nl/artikel/2399094-groningers-teleurgesteld-over-ontbreken-einddatum-gaswinning|archive-date=2021-09-24|date=2021-09-24|access-date=2021-09-25|language=nl}}</ref> Reuters reported that "extraction quickly became problematic in recent years, as a series of tremors caused by gas production damaged houses and buildings in the region."<ref>{{cite news |title=Dutch confirm plan to end gas production at Groningen next year |url=https://www.reuters.com/business/energy/dutch-confirm-plan-end-gas-production-groningen-next-year-2021-09-24/ |work=Reuters |date=24 September 2021}}</ref><ref>{{cite news |title=Europe's energy crisis: Why are natural gas prices soaring and how will it affect Europeans? |url=https://www.euronews.com/2021/10/01/europe-s-energy-crisis-why-are-natural-gas-prices-soaring-and-how-will-it-affect-europeans |work=Euronews |date=6 October 2021}}</ref> |
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Some critics blamed the [[European Union Emissions Trading System]] (EU ETS) and [[Nuclear power phase-out|closure of nuclear plants]] for contributing to the energy crisis.<ref>{{cite news |title=European Energy Crisis Fuels Carbon Trading Expansion Concerns |url=https://www.bloomberg.com/news/articles/2021-10-06/european-energy-crisis-fuels-carbon-trading-expansion-concerns |work=Bloomberg |date=6 October 2021}}</ref><ref>{{cite news |title=In Global Energy Crisis, Anti-Nuclear Chickens Come Home to Roost |url=https://foreignpolicy.com/2021/10/08/energy-crisis-nuclear-natural-gas-renewable-climate/ |work=Foreign Policy |date=8 October 2021}}</ref> The [[Angela Merkel|Merkel]] government in Germany decided in 2011 to [[nuclear power phase-out|phase out]] both [[Nuclear power in Germany|nuclear power]] and coal plants.<ref>{{cite news |title=Germany Flirts With Power Crunch in Nuclear and Coal Exit |url=https://www.bloomberg.com/news/articles/2021-08-22/germany-flirts-with-power-crunch-in-nuclear-and-coal-exit |work=Bloomberg |date=22 August 2021}}</ref> |
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U.S. exports of [[liquefied natural gas]] (LNG) to China and other Asian countries surged in 2021, with Asian buyers willing to pay higher prices than European importers.<ref>{{cite news |title=Asian buyers outbid Europe for spot supplies of US natural gas |url=https://www.ft.com/content/deaa7583-e69f-4a5f-9486-cc05c710a51a |work=Financial Times |date=21 September 2021}}</ref> In late 2021 and early 2022, half or more of US LNG exports went to Europe.<ref name=luna>{{cite web |last1=Luna |first1=Marcy de |title=Europe remains top destination for U.S. LNG for the third month |url= https://www.reuters.com/business/energy/europe-remains-top-destination-us-lng-third-month-2022-02-15/ |website=Reuters |archive-url=https://web.archive.org/web/20220220153719/https://www.reuters.com/business/energy/europe-remains-top-destination-us-lng-third-month-2022-02-15/ |archive-date=20 February 2022 |language=en |date=15 February 2022 |url-status=live}}</ref><!-- add charts --> |
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In late 2021, European energy prices continued to increase, while an unprecedented energy crunch, particularly for natural gas, weighed heavily on economic growth indicators. Norway increased its export to EU to 2.9 billion m³/week.<ref name="op2022-02-17" /> Liquified natural gas markets were tight for the entire 2021. The [[Kremlin]] has been accused to tout the necessity of [[Nord Stream 2]], but some energy analysts view energy shortages in Europe as self-inflicted, and blame European Union sanctions of Russian entities, among other reasons.<ref>{{Cite web|last=Cohen|first=Ariel|title=Europe's Self-Inflicted Energy Crisis|url=https://www.forbes.com/sites/arielcohen/2021/10/14/europes-self-inflicted-energy-crisis/|access-date=2022-10-01|website=Forbes|language=en}}</ref> |
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Europe's energy crisis was spreading to the [[fertilizer]] and [[Food industry|food]] industries.<ref>{{cite news |title=Energy crisis today – fertiliser and food crisis tomorrow? |url=https://www.euractiv.com/section/agriculture-food/opinion/energy-crisis-today-fertiliser-and-food-crisis-tomorrow/ |work=Euractiv |date=19 October 2021}}</ref><ref>{{cite news |title='I'm afraid we're going to have a food crisis': The energy crunch has made fertilizer too expensive to produce, says Yara CEO |url=https://fortune.com/2021/11/04/energy-crisis-food-shortage-security-fertilizer-prices-yara-ceo-madagascar-cop26/ |work=[[Fortune (magazine)|Fortune]] |date=4 November 2021}}</ref> According to Julia Meehan, the head of fertilizers for the commodity price agency ICIS, "We are seeing record prices for every fertiliser type, which are all way above the previous highs in 2008. It's very, very serious. People don't realise that 50% of the world's food relies on fertilisers."<ref>{{cite news |title=Fears global energy crisis could lead to famine in vulnerable countries |url=https://www.theguardian.com/business/2021/oct/20/global-energy-crisis-famine-production |work=The Guardian |date=20 October 2021}}</ref> |
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On 16 November 2021, European natural gas prices rose by 17% after Germany's energy regulator temporarily suspended approval of the [[Nord Stream 2]] natural gas pipeline from Russia to Germany.<ref>{{cite news |title=Natural-Gas Prices Jump as Germany Pauses Certification of Russian Pipeline |url=https://www.wsj.com/articles/natural-gas-prices-jump-as-germany-pauses-certification-of-russian-pipeline-11637069393 |work=The Wall Street Journal |date=16 November 2021}}</ref><ref>{{cite news |title=European Natural Gas Prices Surge on Nord Stream 2 Delay — LNG Recap |url=https://www.naturalgasintel.com/european-natural-gas-prices-surge-on-nord-stream-2-delay-lng-recap/ |work=Natural Gas Intelligence |date=16 November 2021}}</ref> |
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In the first two months after Russia invaded Ukraine on 24 February 2022, Russia earned $66.5 billion from fossil fuel exports, and the EU accounted for 71% of that trade.<ref>{{cite news |title=Russia has made $66 billion from fuel exports since it invaded Ukraine – and the EU is still its biggest buyer, study finds |url=https://markets.businessinsider.com/news/commodities/russia-oil-gas-coal-fossil-fuel-exports-revenue-ukraine-war-2022-4 |work=Business Insider |date=28 April 2022}}</ref> As a result of the invasion, [[Brent Crude|Brent oil]] [[Price of oil|prices]] rose above $130 a barrel for the first time since 2008.<ref>{{cite news |last=Disavino |first=Scott |title=Oil price surges to highest since 2008 on delays in Iranian talks |url=https://www.reuters.com/business/energy/oil-price-set-surge-further-iranian-talks-delays-2022-03-06/ |work=[[Reuters]] |date=7 March 2022}}</ref> In April 2022, Russia supplied 45% of EU's natural gas imports, earning $900 million a day.<ref>{{cite news |title=Missiles fly, but Ukraine's pipeline network keeps Russian gas flowing to Europe |url=https://www.cbc.ca/news/business/russian-gas-europe-1.6415652 |work=CBC News |date=12 April 2022}}</ref> In May 2022, the [[European Commission]] proposed a ban on oil imports from Russia, part of the economic response to the [[2022 Russian invasion of Ukraine]].<ref>{{cite news |url=https://www.npr.org/2022/05/04/1096596286/eu-europea-russia-oil-ban |title=The EU just proposed a ban on oil from Russia, its main energy supplier |author=Bill Chappell |website=[[NPR]] |date=4 May 2022}}</ref><ref>{{cite news |title=EU oil ban adds pressure on Russia but obstacles remain: Analysts |url=https://www.aljazeera.com/news/2022/5/12/eus-proposed-oil-ban-steps-up-pressure-on-russia-analysts |work=Al Jazeera |date=12 May 2022}}</ref> In May 2022, Russia imposed sanctions on European subsidiaries of Gazprom.<ref>{{cite news |title=Europe faces gas supply disruption after Russia imposes sanctions |url=https://www.aljazeera.com/news/2022/5/12/europes-gas-supply-crisis-grows-after-russia-imposes-sanctions |work=Al Jazeera |date=12 May 2022}}</ref> |
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In response to the invasion of Ukraine, the European Commission and [[International Energy Agency]] presented joint plans to reduce reliance on Russian energy, reduce Russian gas imports by two thirds within a year, and completely by 2030.<ref>{{cite news |last1=Weise |first1=Zia |date=8 March 2022 |title=Commission plans to get EU off Russian gas before 2030 |work=POLITICO |url=https://www.politico.eu/article/commission-plan-eu-russia-gas-2030/}}</ref><ref>{{cite web |author=[[International Energy Agency]] |date=March 2022 |title=A 10-Point Plan to Reduce the European Union's Reliance on Russian Natural Gas |url=https://www.iea.org/reports/a-10-point-plan-to-reduce-the-european-unions-reliance-on-russian-natural-gas |publisher=IEA}}</ref> On 18 May 2022, the European Union published plans to end its reliance on Russian oil, natural gas and coal by 2027.<ref>{{cite news |title=EU unveils 210 bln euro plan to ditch Russian fossil fuels |url=https://www.reuters.com/business/sustainable-business/eu-unveils-escape-route-russian-fossil-fuels-by-2027-2022-05-18/ |work=Reuters |date=18 May 2022}}</ref> |
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Responding to the crisis, [[Peru]] saw its export of LNG increase 74% in the first months of 2022 compared to the previous year, with LNG exports to Europe rising greatly, especially in [[Spain]] and the [[United Kingdom]].<ref name=":0">{{Cite news |last1=Aquino |first1=Marco |last2=Parraga |first2=Marianna |date=2022-05-31 |title=In Latam, Peru streaks ahead in LNG race to Europe as Trinidad stumbles |language=en |work=[[Reuters]] |url=https://www.reuters.com/business/energy/latam-peru-streaks-ahead-lng-race-europe-trinidad-stumbles-2022-05-31/ |access-date=2022-06-06}}</ref> |
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In June 2022, the United States government agreed to allow Italian company [[Eni]] and Spanish company [[Repsol]] to import [[History of the Venezuelan oil industry|oil from Venezuela]] to Europe to replace oil imports from Russia.<ref name="oilvenezuela">{{cite news |title=Oil from sanctioned Venezuela to help Europe replace Russian crude as soon as next month: report |url=https://www.businessinsider.com/oil-from-venezuela-to-help-replace-russian-crude-reuters-reports-2022-6 |work=Business Insider |date=5 June 2022}}</ref> French Finance Minister [[Bruno Le Maire]] said that France negotiated with the [[United Arab Emirates]] to replace some Russian oil imports.<ref name="oilvenezuela" /> On 15 June 2022, [[Israel]], [[Egypt]] and the European Union signed a trilateral natural gas agreement.<ref>{{cite news |title=EU signs gas deal with Israel, Egypt in bid to ditch Russia |url=https://www.aljazeera.com/news/2022/6/15/eu-signs-gas-deal-with-israel-egypt-in-bid-to-ditch-russia |work=Al Jazeera |date=15 June 2022}}</ref> |
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In March 2022, ''Bloomberg'' reported that China was reselling its US LNG shipments to a desperate Europe at a "hefty profit".<ref>{{Cite news |date=2022-03-15 |title=China Sells U.S. LNG to Europe at a Hefty Profit |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-03-15/china-sells-some-spare-u-s-gas-to-europe-for-a-hefty-profit |access-date=2022-08-26}}</ref> In August 2022, it was reported in ''[[Nikkei Asia]]'' that China was again reselling some of its surplus LNG cargoes to Europe due to having weak energy demands in its domestic market, suggesting that China was sufficiently stocked in LNG and was an unexpected "white knight" throwing an "energy lifeline" to help Europe with its winter gas shortage fears.<ref>{{Cite web |title=China throws Europe an energy lifeline with LNG resales |url=https://asia.nikkei.com/Politics/International-relations/Indo-Pacific/China-throws-Europe-an-energy-lifeline-with-LNG-resales |access-date=2022-08-26 |website=Nikkei Asia |language=en-GB}}</ref> |
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The energy crisis is expected to damage Europe's energy-intensive [[Manufacturing|industries]] such as [[steel]], [[aluminium]], fertilizers and the [[energy industry]].<ref>{{cite news |title=Energy crisis: Europe's industry shutting down |url=https://www.intellinews.com/energy-crisis-europe-s-industry-shutting-down-255913/ |work=[[bne IntelliNews]] |date=20 September 2020}}</ref><ref>{{cite news |title=Industry says EU plan to tackle energy crisis falls short |url=https://www.reuters.com/markets/europe/industry-says-eu-plan-tackle-energy-crisis-falls-short-2022-09-16/ |work=Reuters |date=16 September 2022}}</ref> In late 2022, Europe has been buckling under an acute energy shortage with governments pushing through multi-billion euro packages to protect households from soaring energy bills. In late summer 2022, Russia had halted gas flows via the [[Nord Stream 1]] pipeline several times blaming [[International sanctions during the Russo-Ukrainian War|Western sanctions against Russia]], while the value of the [[Euro]] continued to slip against all major currencies. Russia's foreign ministry blamed the United States for Europe's energy crisis, by pushing European leaders towards a "suicidal" step of cutting economic and energy cooperation with Moscow, which had been a reliable energy supplier to Europe since Soviet times.<ref>{{Cite news|last=Reuters|date=2022-09-06|title=Russia says United States is behind Europe's gas supply crisis|language=en|work=Reuters|url=https://www.reuters.com/business/energy/russia-says-united-states-is-behind-europes-gas-supply-crisis-2022-09-06/|access-date=2022-10-01}}</ref> |
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On 6 October 2022, the E.U. in its 8th round of sanctions agreed to [[2022 Russian oil price cap|price cap Russian oil]] imports (for Europe and third countries) with a price maximum to be set on December 5, 2022. According to supporting U.S. and U.K. economists, this would "increase the bargaining power for private and public companies that purchase Russian oil". Shortly after the E.U. meeting, OPEC+ decided to cut production again by 2% of the global output. A number of European nations, including [[Hungary]] and [[Serbia]] insisted on significant exemptions from the sanctions.<ref>[https://baselinescenario.com/2022/10/11/letter-to-treasury-secretary-janet-yellen-in-support-of-a-price-cap-on-russian-oil-exports/ "Letter to Treasury Secretary Janet Yellen: In Support of a Price Cap on Russian Oil Exports"] ''baselinescenario.com''. Retrieved 12 Oct 2022.</ref><ref>[https://www.japantimes.co.jp/news/2022/10/06/business/opec-russia-oil-output/ "In rebuke to West, OPEC and Russia aim to raise oil prices with big supply cut"] ''Japan Times''. Retrieved 12 Oct 2022.</ref> |
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==== Belgium ==== |
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A study by the Commission for the Regulation of Electricity and Gas showed a 30% increase in the price of electricity and 50% in the price of natural gas in Belgium by September 2021.<ref>{{Cite web|date=2021-09-06|title=Les prix du gaz et de l'électricité explosent|url=https://www.rtbf.be/info/societe/onpdp/detail_les-prix-du-gaz-et-de-l-electricite-explosent?id=10834503|access-date=2021-10-18|website=RTBF Info|language=fr}}</ref>{{update after|2022|9|4}} |
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==== Bulgaria==== |
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On 1 October 2022, the long-delayed Interconnector Greece-Bulgaria (IGB) pipeline officially came into service. The pipeline delivers Aseri gas to Bulgaria, but also serves the [[Western Balkan]] and [[Moldova]]. The EU hailed the project as a step to 'freedom from Russian gas'. |
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==== France ==== |
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[[File:Nuclear Power Plant Cattenom.jpg|thumb|right|As of early September 2022, 32 of France's 56 [[List of power stations in France|nuclear reactors]], all operated by [[Électricité de France|EDF]], were shut down due to maintenance or technical problems.]] |
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[[Nuclear power in France]] usually provides up to 70% of electricity production. Corrosion in several French nuclear reactors, even the most modern type N4, led to long term shutdowns since October 2021. |
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Surging energy prices for natural gas and [[heating oil]] have caused higher living expenses, particularly for renters and rural land owners. Socio-economic measures were taken to counter-act inflationary pressures that disproportionally affect working families and immigrants. The 2021 energy crisis, complicated by political tensions in [[Eastern Europe]] and scarce natural gas supplies, have cost the French state an additional €580 million ($685 million) per year.<ref>{{Cite web|title=|url=https://www.bloomberg.com/tosv2.html?vid=&uuid=a29d893a-4160-11ed-9cab-4162574c6257&url=L25ld3MvYXJ0aWNsZXMvMjAyMS0wOS0xNS9mcmFuY2UtbWF5LXRyeS10by1lYXNlLWNvc3Qtb2YtZW5lcmd5LWJpbGxzLXdpdGgtbW9yZS12b3VjaGVycw==|access-date=2022-10-01|website=www.bloomberg.com}}</ref> |
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On 6 July 2022, Paris announced that it will nationalise the [[Électricité de France]] (EDF) power utility as a result of the escalating energy crisis on the European continent.<ref>{{Cite news|last1=Rose|first1=Michel|last2=Hummel|first2=Tassilo|date=2022-07-06|title=France plans full nationalisation of power utility EDF|language=en|work=Reuters|url=https://www.reuters.com/world/europe/frances-edf-be-fully-nationalised-borne-2022-07-06/|access-date=2022-10-01}}</ref> |
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On 30 August 2022, just after [[Gazprom]] showed a record net profit of 2.5 trillion roubles ($41.75 billion), the Russian gas giant announced it would cut all natural gas deliveries to [[Engie]], "due to a disagreement between the parties". According to the French ministry, Gazprom's actions did not compromise the security of France's energy supply.<ref>{{Cite news|last=Reuters|date=2022-08-30|title=Gazprom says H1 net profit $41.8 bln, will pay dividends|language=en|work=Reuters|url=https://www.reuters.com/business/energy/russias-gazprom-consider-paying-interim-dividends-2022-08-30/|access-date=2022-10-01}}</ref><ref>{{Cite web|last=Pennington|first=Josh|date=2022-08-30|title=Russia's Gazprom to completely halt gas supplies to France's Engie | CNN Business|url=https://www.cnn.com/2022/08/30/business/gazprom-shuts-off-gas-france-engie/index.html|access-date=2022-10-01|website=CNN|language=en}}</ref> |
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As of early September 2022, 32 of France's [[Nuclear power in France|56 nuclear reactors]], all operated by EDF, were shut down due to maintenance or technical problems.<ref>{{cite news |title=France's EDF plans to restart nation's entire nuclear fleet by early next year |url=https://www.euronews.com/2022/09/04/frances-edf-plans-to-restart-nations-entire-nuclear-fleet-by-early-next-year |work=Euronews |date=4 September 2022}}</ref><ref>{{cite news |title=EDF to restart all its nuclear reactors this winter – minister |url=https://www.reuters.com/business/energy/edf-restart-all-its-nuclear-reactors-by-this-winter-minister-says-2022-09-02/ |work=Reuters |date=2 September 2022}}</ref> |
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==== Germany ==== |
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[[File:LudwigshafenBASF2017-07-29-12-44-06.jpg|thumb|The German chemical company [[BASF]] was forced to cut production<ref>{{cite news |title=How gas rationing at Germany's BASF plant could plunge Europe into crisis |url=https://www.theguardian.com/business/2022/sep/15/gas-rationing-germany-basf-plant-europe-crisis |work=The Guardian |date=16 September 2022}}</ref>]] |
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Energy-intensive [[Economy of Germany|German industry]] and [[List of exports of Germany|German exporters]] were hit particularly hard by the energy crisis.<ref>{{cite news |title=A Grave Threat to Industry in Germany |url=https://www.spiegel.de/international/business/growing-energy-crisis-a-grave-threat-to-industry-in-germany-a-9152547c-a31d-483e-a70c-242c280cab23 |work=[[Der Spiegel]] |date=21 September 2022}}</ref><ref>{{cite news |title=How Bad Will the German Recession Be? |url=https://www.spiegel.de/international/business/energy-crisis-fallout-how-bad-will-the-german-recession-be-a-9e1f479e-5fef-4e62-b5ca-2f9e87b9bbca |work=Der Spiegel |date=14 September 2022}}</ref> For example, [[Volkswagen]] has sufficient gas reserves only for the next five to six months.<ref>{{cite news |title=Volkswagen has gas supplies for winter but could see shortages next year |url=https://www.reuters.com/business/autos-transportation/volkswagen-says-gas-supply-stable-this-winter-could-see-shortages-next-year-2022-09-22/ |work=Reuters |date=22 September 2022}}</ref> Carsten Brzeski, economist at ING bank, said the war in Ukraine "puts an end to the German economic business model as we knew it — a model which was mainly based on cheap energy imports and industrial exports into an increasingly globalized world."<ref>{{cite news |title=Is the energy crisis the final nail in Germany's export-dependent economic model? |url=https://www.dw.com/en/is-the-energy-crisis-the-final-nail-in-germanys-export-dependent-economic-model/a-62727083 |work=Deutsche Welle |date=16 September 2022}}</ref> On 29 September 2022, Germany presented a €200 billion plan to support industry and households.<ref>{{cite news |title=Germany to mobilise €200bn economic 'shield' to field energy crisis |url=https://www.euractiv.com/section/energy/news/germany-to-mobilise-e200bn-economic-shield-to-get-through-energy-crisis/ |work=[[Euractiv]] |date=30 September 2022}}</ref> |
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The country is a principal purchaser of Russian [[natural gas]] and was mostly affected by sanctions on Russian energy in the aftermath of [[2022 Russian Invasion of Ukraine|its invasion of Ukraine in February 2022]]. Germany indefinitely suspended the regulatory approval for the [[Nord Stream 2]] in March, but resisted pressures to shut down oil and natural gas trades with Russia altogether. In Germany, both employers and labour representatives feared that a further tightening of sanctions would threaten entire employment sectors. The recent energy crisis and encouragement by German governments to save Russian energy was also dubbed "freezing for Ukraine". Industry sectors not directly involved with natural gas or petroleum would also suffer as "firms would go bust" if prices for crucial raw materials like [[nickel]] and [[aluminium]] were to increase even more.<ref>{{Cite web|date=2022-04-09|title='Firms will go bust': Germany prepares for a future without Russian gas|url=https://www.theguardian.com/world/2022/apr/09/firms-will-go-bust-germany-prepares-for-a-future-without-russian-gas|access-date=2022-10-01|website=the Guardian|language=en}}</ref> In March 2022, Germany's Minister for Economic Affairs [[Robert Habeck]] cautioned, "If we do not obtain more gas next winter and if deliveries from Russia were to be cut then we would not have enough gas to heat all our houses and keep all our industry going."<ref>{{cite news |date=20 March 2022 |title=Reliant on Russian gas, Germany concerned over winter fuel supplies |work=France 24 |url=https://www.france24.com/en/europe/20220320-reliant-on-russian-gas-german-concerns-mount-over-winter-fuel-supplies |url-status=live |archive-url=https://web.archive.org/web/20220322105610/https://www.france24.com/en/europe/20220320-reliant-on-russian-gas-german-concerns-mount-over-winter-fuel-supplies |archive-date=22 March 2022}}</ref> Habeck said Germany plans to end imports of Russian natural gas by mid-2024.<ref>{{cite news |title=Germany seeks to wean itself off Russian energy imports |url=https://www.dw.com/en/germany-seeks-to-wean-itself-off-russian-energy-imports/a-61257187 |work=Deutsche Welle |date=25 March 2022}}</ref><ref>{{cite news |title=Germany's Era of Cheap Energy Is Over, Economy Minister Says |url=https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-05-02/card/germany-s-era-of-cheap-energy-is-over-economy-minister-says-YAZ6a0GyZrTsLYwSfv0x |work=The Wall Street Journal |date=2 May 2022}}</ref> |
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In March 2022, German Chancellor [[Olaf Scholz]] announced plans to build two new LNG terminals.<ref>{{cite news |title=German minister heads to Qatar to seek gas alternatives |url=https://www.dw.com/en/german-minister-heads-to-qatar-to-seek-gas-alternatives/a-61184188 |work=Deutsche Welle |date=19 March 2022}}</ref> Habeck said Germany reached a long-term energy partnership with [[Qatar]],<ref>{{cite news |title=Germany Signs Energy Deal With Qatar As It Seeks To reduce Reliance On Russian Supplies |url=https://www.rferl.org/a/germany-qatar-russian-gas-partnership-ukraine/31762093.html |work=[[Radio Free Europe/Radio Liberty]] |date=20 March 2022}}</ref> one of the world's largest exporters of [[liquefied natural gas]].<ref>{{cite news |title=Germany goes on a mission to secure supplies of Qatari gas |url=https://www.euractiv.com/section/energy/news/germany-goes-on-a-mission-to-secure-supplies-of-qatari-gas/ |work=Euractiv |date=21 March 2022}}</ref>{{update after|2022|9|4}}<!-- what progress post government statements? six months after the Chancellor's statement --> |
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In June 2022, Scholz said that his government remains committed to phasing out [[Nuclear power in Germany|nuclear power]] despite rising energy prices and Germany's dependence on [[Russia in the European energy sector|energy imports from Russia]].<ref>{{cite news |title=Scholz and liberal finance minister clash over nuclear phase-out |url=https://www.euractiv.com/section/energy-environment/news/scholz-and-liberal-finance-minister-clash-over-nuclear-phase-out/ |work=[[Euractiv]] |date=9 June 2022}}</ref> Former Chancellor Angela Merkel committed Germany to a [[nuclear power phase-out]] after the [[Fukushima nuclear disaster]].<ref>{{cite news |title=Germany Confronts Its Nuclear Demons |url=https://foreignpolicy.com/2022/06/20/germany-nuclear-power-energy-weapons-nato-russia-ukraine-war-energy-crisis-greens/ |work=[[Foreign Policy]] |date=20 June 2022}}</ref> |
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On 25 July 2022, [[Gazprom]] announced it will reduce gas flows to Germany to 20% of the maximum capacity, or 50% of the current throughput, which further exacerbated the energy crisis in Europe.<ref name="nytimes.com"/> |
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In September 2022, Germany was forced to take over three [[Rosneft]] refineries due to a halt of Russian crude imports. The move averted a shut-down of those refineries, which are essential to the German economy.<ref>{{cite news |title=Germany takes control of stakes in Rosneft oil refineries |work=BBC News |date=16 September 2022 |url=https://www.bbc.com/news/business-62924071|access-date=18 September 2022}}</ref> |
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On 5 October 2022, German Economy Minister [[Robert Habeck]] accused the US and other "friendly" gas supplier nations that they were profiting from the Ukraine war with "astronomical prices". He called for more solidarity by the US to assist energy-pressed allies in Europe.<ref>[https://www.cnbc.com/2022/10/05/german-minister-criticizes-us-over-astronomical-natural-gas-prices.html "German minister criticizes U.S. over ‘astronomical’ natural gas prices"] ''cnbc.com''. Retrieved 5 October 2022.</ref> |
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==== Greece ==== |
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[[File:Petrstation.jpg|300px|thumb|Gas station in [[Kavala]] with gas prices exceeding 2 euros/litre]] |
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Due to the abrupt delignitisation and Limit Price, electricity prices hit record high €420 per MWh.<ref>{{cite web |title=Νέο ρεκόρ η τιμή ρεύματος στην Ελλάδα: 426,90 ευρώ η μεγαβατώρα |url=https://www.businessnews.gr/epixeiriseis/energeia/item/231146-neo-rekor-i-timi-reymatos-stin-ellada-426-90-evro-i-megavatora |access-date=17 April 2022}}</ref> The Limit Price is a key parameter of the electricity tariff. It is transferred to the electricity bill as adjustment clause. By activating it, the providers pass on to the consumption the total increases of the supply costs in the wholesale market and the reductions respectively, although in the latter case they are not in a hurry or can be forgotten. The adjustment clause transfers to consumption the total cost of supply that is added to the Limit Price and corresponds to costs.{{cn|date=September 2022}} |
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Due to the high taxation, including the [[Excise]] Tax, and the rise in price of crude oil, the price of unleaded gasoline went over 2 €/l in April 2022.<ref>{{cite web |title=ΘΕΜΑ: ΚΑΘΗΜΕΡΙΝΟ ΔΕΛΤΙΟ ΕΠΙΣΚΟΠΗΣΗΣ ΤΙΜΩΝ ΥΓΡΩΝ ΚΑΥΣΙΜΩΝ |url=http://www.fuelprices.gr/files/deltia/IMERISIO_DELTIO_PANELLINIO_14_04_2022.pdf |access-date=17 April 2022}}</ref> |
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==== Serbia ==== |
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The 2021/2022 energy crisis and the [[2022 Russian invasion of the Ukraine]] made coal from [[Kosovo i Metohija|Kosovo]] more attractive for European energy traders. [[Serbia]] as well is increasing coal production due to a lack of [[hydroelectric energy]]. Surging wholesale prices for [[natural gas]] increased the demand for coal in Western Europe. Environmentalists warned that coal is not the answer, as it roughly emits double the amount of carbon dioxide per kWh.<ref>{{Cite news|last1=Bytyci|first1=Fatos|last2=Teofilovski|first2=Ognen|date=2022-04-19|title=Balkans turns to coal as energy crisis trumps climate commitments|language=en|work=Reuters|url=https://www.reuters.com/business/energy/balkans-turns-coal-energy-crisis-trumps-climate-commitments-2022-04-19/|access-date=2022-10-01}}</ref> |
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In October 2022, President [[Aleksandar Vucic]] welcomed the agreement by the E.U. to postpone the decision to ban Russian oil imports from the [[Western Balkans]]. But he criticised Croatia's decision to include Serbia in an EU ban on Russian oil imports, from which [[Belgrade]] was originally exempt. Later, Serbia agreed with [[Hungary]] to construct an oil pipeline to supply Serbia with cheaper Russian Urals crude via the [[Druzhba oil pipeline]], to circumvent [[Croatia]].<ref>[https://www.aa.com.tr/en/energy/energy-projects/eu-postpones-decision-on-russian-oil-ban-says-serbia-president/36562 "EU postpones decision on Russian oil ban, says Serbia president"] ''aa energy''. Retrieved 12 Oct 2022.</ref><ref>[https://www.reuters.com/business/energy/hungary-serbia-agree-build-pipeline-ship-russian-oil-serbia-hungarian-govt-2022-10-10/ "Hungary, Serbia agree to build pipeline to ship Russian oil to Serbia"] ''Reuters''. Retrieved 12 Oct 2022.</ref> |
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==== Moldova ==== |
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In 2021, [[Moldova]] had a gas crisis that lasted for several months until the signing of a new contract with the Russian state-controlled gas company [[Gazprom]] with a duration of 5 years. There were allegations that Russia used this crisis to its advantage as a consequence of Moldova having elected the pro-European now president [[Maia Sandu]] over the pro-Russian candidate [[Igor Dodon]] in 2020, although this was denied by Russia.<ref>{{cite news|url=https://www.rferl.org/a/moldova-gazprom-crisis-end/31539727.html|title=Moldova says gas crisis over after deal with Russia's Gazprom|publisher=[[Radio Free Europe/Radio Liberty]]|date=1 November 2021}}</ref> |
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==== Russia ==== |
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In 2022, Russia achieved record amount of earnings through the export of fossil fuels. On 27 May 2022, Russian Finance Minister [[Anton Siluanov]] stated that extra revenues from the sale of natural gas in the amount of €13.7 billion will be used to increase pension funds for retired individuals and families with children, as well for [[2022 Russian invasion of Ukraine|"special operations"]] in Ukraine.<ref>{{Cite web|date=2022-05-28|title=Russland: Rekordeinnahmen aus Gas-Exporten|url=https://www.blick.ch/ausland/13-7-milliarden-euro-russland-rekordeinnahmen-aus-gas-exporten-id17529007.html|access-date=2022-10-01|website=Blick|language=de-CH}}</ref> Russia has also increased energy exports to [[China]] and [[India]] to make up for decreased revenues in Europe. In the first half of 2022, Russia pocketed an extra $24 billion from selling fossil fuels to both nations.<ref name="auto" /> |
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By August 2022, Russia was selling almost as much oil as before its [[2022 Russian invasion of Ukraine|invasion of the Ukraine]]. Sales to the [[Middle East]] and Asia helped make up for declining exports to Europe, and due to the higher price, Moscow revenues were $20 billion monthly compared to $14.6 billion a year before (2021). Despite [[International sanctions during the Russo-Ukrainian War]], Russian energy sales have increased in value, and its exports have expanded with new financing options and payment methods for international buyers.<ref>{{Cite news|last=Hirtenstein|first=Joe Wallace and Anna|date=2022-08-29|title=Russia Confounds the West by Recapturing Its Oil Riches|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/russia-confounds-the-west-by-recapturing-its-oil-riches-11661781928|access-date=2022-10-01|issn=0099-9660}}</ref> |
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According to Duma speaker [[Vyacheslav Volodin]], the mothballed [[Nord Stream 2]] [[gas pipeline]] should be revived to ease energy shortages in Europe. Russia has blamed the West for hindering gas deliveries through the operational [[Nord Stream 1]] pipeline because of economic sanctions and delayed shipments of crucial pipeline components.<ref>{{Cite news|last=Reuters|date=2022-09-02|title=Russian lawmaker urges Europe to revive Nord Stream 2 to solve energy crisis|language=en|work=Reuters|url=https://www.reuters.com/business/energy/russian-lawmaker-urges-europe-revive-nord-stream-2-solve-energy-crisis-2022-09-02/|access-date=2022-10-01}}</ref> |
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Russia had been accused of sabotage by Western nations when [[2022 Nord Stream gas leaks|four leaks]] were discovered in the [[Nord Stream]] 1/2 pipelines on 26 September 2022, both inoperable at the time. Russia had rejected such allegations. |
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On 29 September, [[Gazprom]] announced it will ship 42.5 million cubic metres/d of gas to Europe via Ukraine, a slight increase.<ref>[https://www.reuters.com/article/ukraine-crisis-russia-gas-idAFS8N2X1077 Russia's Gazprom says it will ship 42.5 mcm of gas to Europe via Ukraine on Thursday] ''Reuters''. Retrieved 9 Oct 2022.</ref> The company also said it would deliver 5.7 million cubic metres of gas to Moldavia, but reserved the right to exit the agreement "at any moment".<ref>{{Cite news|last=Reuters|date=2022-10-01|title=Gazprom says it will supply 5.7 mcm of gas to Moldova daily in October|language=en|work=Reuters|url=https://www.reuters.com/business/energy/russias-gazprom-says-it-will-ship-425-mcm-gas-europe-via-ukraine-thursday-2022-09-29/|access-date=2022-10-01}}</ref> |
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In October 2022, Russia's exports of crude to China had again surpassed Saudi Arabia's for the 3rd month. Significant increases were seen through the [[Eastern Siberia–Pacific Ocean oil pipeline]] and seaborne shipments from Russia’s European and Far Eastern ports, up 7.6% from a year ago, according to Chinese customs data. Increased Russian oil exports to China are significant during an overall decline of 9.5 percent crude oil imports into China.<ref>[https://www.arabnews.com/node/2147056/business-economy "Russia continues to be China’s top oil supplier for 3rd month; Saudi Arabia trails behind"] ''arabnews''. Retrieved 12 Oct 2022.</ref> |
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==== Spain ==== |
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In [[Spain]], electricity prices rose more than 200% by September 2021.<ref>{{cite news |title=Spain's Plan to Curb Soaring Energy Prices a Sign of Growing State Intervention |url=https://www.voanews.com/a/spain-s-shock-plan-to-curb-soaring-energy-prices-a-sign-of-growing-state-intervention/6235626.html |work=VOA News |date=20 September 2021}}</ref>{{clarify|needs context to address the broader 2021–2022 energy crises|date=September 2022}} |
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On 1 November 2021, [[Algeria]] stopped natural gas exports to Spain through the [[Maghreb–Europe Gas Pipeline]], opting instead to supply Spain through the [[Medgaz]] pipeline.<ref name="euronews.com">{{cite news |title=Europe's energy crisis: Spain presses Algeria to guarantee natural gas supply |url=https://www.euronews.com/2021/10/28/spain-presses-algeria-to-guarantee-natural-gas-supply |work=Euronews |date=28 October 2021}}</ref><ref name="Africanews">{{cite news |title=Algeria to halt gas exports to Spain via Morocco |url=https://www.africanews.com/2021/11/01/algeria-to-halt-gas-exports-to-spain-via-morocco/ |work=Africanews |date=1 November 2021}}</ref> Algeria is Spain's largest gas supplier.<ref name="euronews.com" /><ref name="Africanews" /> |
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==== Switzerland ==== |
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In 2021, the Swiss confederation obtained 45% of its total [[natural gas]] consumption from Russian sources via Germany. Initially, Switzerland has sought to expand its use of natural gas for electricity generation, with three back-up power stations to prepare for any potential energy crunch in the coming years. But in the aftermath of the [[2022 Russian invasion of the Ukraine]], Switzerland imposed financial sanctions against Russian banks, and a ban on Russian crude and petroleum products in June 2022.<ref>{{Cite web|last=Keystone-SDA/sb|title=Swiss adopt Russian oil ban and other sanctions over Ukraine war|url=https://www.swissinfo.ch/eng/politics/swiss-adopt-russian-oil-ban-and-other-sanctions-over-ukraine-war/47663920|access-date=2022-10-01|website=SWI swissinfo.ch|language=en}}</ref> |
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In August 2022, the [[Swiss Federal Council]] presented an emergency plan for [[Energy in Switzerland|Switzerland's energy grid]] with the goal to supply more [[hydroelectric energy]], and assure sufficient external storage for natural gas. Switzerland was also negatively affected by the [[2022 European drought]] with minimal fill volumes of alpine dams.<ref>{{Cite web|title=Notmassnahmen zur Energiekrise – Sommarugas Notfallplan ist unrealistisch|url=https://www.tagesanzeiger.ch/sommarugas-notfallplan-ist-unrealistisch-997915472765|access-date=2022-10-01|website=Tages-Anzeiger|language=de}}</ref> |
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In September 2022, [[CERN]] officials presented a plan to reduce energy consumption by the [[Large Hadron Collider]] (LHC). The experimental apparatus consumes about a third of Geneva's electricity during peak demand. The European energy crisis has threatened further research at the facility, which is situated on the French-Swiss border.<ref>{{Cite web|last=Journal/swissinfo|first=Wall Street|title=CERN drafts plans to idle accelerators due to Europe's energy crunch|url=https://www.swissinfo.ch/eng/sci-tech/cern-drafts-plans-to-idle-accelerators-due-to-europe-s-energy-crunch/47875950|access-date=2022-10-01|website=SWI swissinfo.ch|language=en}}</ref> |
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==== United Kingdom ==== |
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[[File:Great Britain Natural Gas Prices.webp|thumb|Great Britain Natural Gas Prices]] |
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{{Main|2021 United Kingdom fuel supply crisis|2021 United Kingdom natural gas supplier crisis}} |
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From August 2021, high European wholesale natural gas prices caused 31 domestic suppliers in the United Kingdom to go out of business, out of a total of 70 that had been in operation at the beginning of the year.<ref>{{Cite news|last=McCann|first=Jaymi|date=24 September 2021|title=Who are the 'Big 6' energy companies? The UK's biggest suppliers explained and why gas prices have gone up|work=i|publisher=[[Associated Newspapers]]|url=https://inews.co.uk/news/uk/big-6-energy-companies-who-uk-biggest-suppliers-gas-prices-why-gone-up-1213822|access-date=27 September 2021|archive-date=27 September 2021|archive-url=https://web.archive.org/web/20210927092116/https://inews.co.uk/news/uk/big-6-energy-companies-who-uk-biggest-suppliers-gas-prices-why-gone-up-1213822|url-status=live}}</ref><ref>{{Cite web|url=https://www.forbes.com/uk/advisor/energy/failed-uk-energy-suppliers-update/|title=Failed UK Energy Suppliers Update|website=[[Forbes]]|date=18 February 2022}}</ref><ref>{{cite news |title=Two more UK energy firms go bust as prices soar |url=https://www.bbc.com/news/business-58903122 |work=BBC News |date=14 October 2021}}</ref> In September 2021, panic buying of petrol and diesel fuel by consumers in the United Kingdom caused serious disruption to the supply of road fuel.<ref>{{cite news |title=Fuel crisis: Business Secretary Kwasi Kwarteng 'not guaranteeing anything' over impact on Christmas |url=https://news.sky.com/story/fuel-crisis-business-secretary-kwasi-kwarteng-not-guaranteeing-anything-over-impact-on-christmas-12421137 |work=Sky News |date=29 September 2021}}</ref> |
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The [[National Institute of Economic and Social Research]] reported that increasing energy bills have been the cause of double-digit inflation on the [[British Isles]] due to a disruption of energy sales from [[Eastern Europe]]. Economists said that inflation could remain high and likely increase until September 2023.<ref>{{Cite news|last=Editor|first=Steven Swinford, Political Editor | Mehreen Khan, Economics Editor | Emily Gosden, Energy|title=Energy price cap: Energy bills hit £3,500 with worst yet to come|newspaper=[[The Times]] |language=en|url=https://www.thetimes.co.uk/article/energy-price-cap-rise-october-2022-ofgem-announcement-latest-kgjcqdg0t|access-date=2022-10-01|issn=0140-0460}}</ref> |
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The energy crisis in the U.K. gave rise to a new societal trend, known as the 'Don't Pay Movement'. With 170,000 signatories the group expects to grow to one million members, and pledges to cancel direct debit payments to energy companies on Oct. 1 when household energy bills are expected to increase by 80%. While the government decried the movement as "irresponsible", it may have influenced Britain's Prime Minister [[Liz Truss]] to expedite new energy relief measures.<ref>[https://www.cnbc.com/2022/09/06/uk-energy-bill-boycott-dont-pay-gains-traction-truss-to-offer-relief.html "UK energy bill boycott petition gains traction as new PM Truss under pressure to announce relief measures"] |
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''cnbc.com.'' Retrieved 9 September 2022.</ref> |
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=== North America === |
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==== United States ==== |
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[[File:Natural Gas Prices.webp|thumb|280px|Natural Gas Prices |
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{{legend-line|#00A2FF solid 3px|[[Residential area|Residential]]}} |
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{{legend-line|#61D836 solid 3px|Commercial}} |
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{{legend-line|#929292 solid 3px|Industrial}} |
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{{legend-line|#F8BA00 solid 3px|[[Electric generation]]}} |
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{{legend-line|#FF2600 solid 3px|Export prices}} |
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]] |
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[[File:Price of coal.webp|thumb|280px|right|Price of coal in the United States]] |
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[[File:Gasoline supply.webp|thumb|Gasoline supply]] |
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[[File:Gas price display outside Boston, May 2022.jpg|thumb|Gasoline price display in Massachusetts in May 2022, showing prices above {{convert|4|$/USgal|$/L|2|abbr=on}}.]] |
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Energy Secretary [[Jennifer Granholm]] blamed the [[OPEC]] oil cartel led by [[Saudi Arabia]] and the U.S. gas and [[petroleum industry]] for rising motor fuel prices in the United States.<ref>{{cite news |title=US energy secretary blames Opec 'cartel' for high petrol prices |url=https://www.ft.com/content/cecf912d-705e-47b0-9ceb-911e7c517fd8 |work=Financial Times |date=31 October 2021}}</ref><ref>{{cite news |title=Energy secretary says she hopes gas prices won't reach $4 |url=https://thehill.com/homenews/sunday-talk-shows/580434-energy-secretary-says-she-hopes-gas-prices-wont-reach-4 |work=The Hill |date=7 November 2021}}</ref><ref>{{cite news |title=Granholm Takes Gas Price Blame Shifting To New Heights In Sunday Interview |url=https://www.forbes.com/sites/davidblackmon/2021/11/08/granholm-takes-gas-price-blame-shifting-to-new-heights-in-sunday-interview/ |work=Forbes |date=8 November 2021}}</ref> As the ''Financial Times'' reported on 4 November: "The White House has said OPEC+ risks imperiling the global economic recovery by refusing to speed up oil production increases and warned the U.S. was prepared to use 'all tools' necessary to lower fuel prices."<ref>{{cite news |title=Biden's other setback: OPEC+ ignores his plea for help |url=https://thehill.com/opinion/energy-environment/580486-bidens-other-setback-opec-ignores-his-plea-for-help |work=The Hill |date=8 November 2021}}</ref> |
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According to the U.S. Energy Information Administration, American families heating with propane can expect to pay 54% more in winter 2021/2022 than they did last year.<ref>{{cite web |title=EIA expects U.S. households to spend more on energy this winter|publisher=U.S. Energy Information Administration (EIA) |url=https://www.eia.gov/todayinenergy/detail.php?id=49936 |date=13 October 2021|access-date=26 November 2021}}</ref> |
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On 23 November 2021, the [[Biden administration]] announced it would release 50 million barrels of oil from the [[Strategic Petroleum Reserve (United States)|Strategic Petroleum Reserve]] (SPR).<ref>{{Cite news|last=Ferek|first=Timothy Puko and Katy Stech|date=2021-11-23|title=Strategic Petroleum Reserve: Why Is Biden Tapping It and Will It Bring Lower Gas Prices?|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/why-is-biden-tapping-the-strategic-oil-reserve-and-will-that-lower-gas-prices-11637680300|access-date=2022-10-01|issn=0099-9660}}</ref> |
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Due to the [[2022 Russian invasion of Ukraine]] and subsequent [[international sanctions during the Russo-Ukrainian War]] against Russia, oil prices worldwide soared. In the beginning of March 2022, the price of [[Brent Crude]] passed US$113 a barrel, the highest level since June 2014, while [[West Texas Intermediate]] was trading at just under US$110 a barrel.<ref>{{cite news |url=https://www.bbc.com/news/business-60584798 |title=Oil price rises again as buyers shun Russian crude |last=Martin |first=Josh |website=BBC News |date=2 March 2022 |access-date=11 March 2022}}</ref> On 8 March, President [[Joe Biden]] ordered a ban on imports of Russian oil, gas and coal to the US.<ref>{{cite news |url=https://apnews.com/article/russia-ukraine-war-us-russia-oil-ban-120c0152cf310a5b593f6ae7a2857e62 |title=US strikes harder at Putin, banning all Russian oil imports |last1=Miller |first1=Zeke |last2=Balsamo |first2=Mike |last3=Boak |first3=Josh |website=Associated Press |date=9 March 2022 |access-date=11 March 2022}}</ref> Biden ordered another 30 million barrels of oil released from the SPR in early March, which on 31 March was followed by a release of 1 million barrels on average per day for 180 days, the latter on which is the largest release from the SPR in its history.<ref>{{cite news |url=https://www.axios.com/biden-strategic-petroleum-reserve-oil-release-382b5121-a795-4c33-80f0-b9dc832e46e4.html |title=Biden ordering massive release of oil in bid to curb gas prices |last1=Geman |first1=Ben |last2=Doherty |first2=Erin |website=Axios |date=1 April 2022 |access-date=4 April 2022}}</ref> The Biden administration was pressed on potential oil deals with [[Saudi Arabia]], [[Venezuela]], and [[Iran]] that would have them increase their [[List of countries by oil production|oil production]].<ref>{{cite news |last1=Knickmeyer |first1=Ellen |last2=Bussewitz |first2=Cathy |title=Pariahs no more? US reaches out to oil states as prices rise |url=https://apnews.com/article/russia-ukraine-biden-business-europe-saudi-arabia-f30cd495adf6a7c58b269d508f3007b2 |work=Associated Press |date=10 March 2022 |access-date=10 March 2022}}</ref> However, so far, Saudi Arabia and the [[United Arab Emirates]] have declined requests from the US.<ref>{{cite news |last=Lonas |first=Lexi |title=Saudi, UAE leaders declined calls with Biden amid Ukraine conflict: report |url=https://thehill.com/homenews/administration/597436-saudi-uae-leaders-declined-calls-with-biden-amid-ukraine-conflict |work=[[The Hill (newspaper)|The Hill]] |date=8 March 2022}}</ref><ref>{{cite news |title=Mohammed bin Salman Has Leverage on Biden—and Is Using It |url=https://foreignpolicy.com/2022/03/24/mohammed-bin-salman-saudi-ukraine-oil-biden-opec/ |work=Foreign Policy |date=24 March 2022}}</ref> In May 2022, the Biden Administration announced that it will allow European oil companies to acquire Venezuelan crude immediately but dismissed calls for the US to unilaterally lift all sanctions against Venezuela.<ref>{{Cite web|date=2022-05-18|title=U.S. to ease sanctions on Venezuela, enabling cargoes to Europe|url=https://www.worldoil.com/news/2022/5/18/u-s-to-ease-sanctions-on-venezuela-enabling-cargoes-to-europe/|access-date=2022-10-01|website=www.worldoil.com|language=en}}</ref> |
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On 14 June 2022, the American Petroleum Institute unveiled a ten-point policy plan advising how to reduce the price of fuel in the United States and globally. Some of those points include lifting development restrictions on federal lands and waters, ending permitting obstruction on natural gas projects, revising the National Environmental Policy Act process to reduce some of the "bureaucracy" placed on energy projects, among other suggestions.<ref>{{cite web |title=API Unveils Ten-Point Policy Plan to Restore U.S. Energy Leadership, Fuel Economic Recovery|url=https://www.api.org/news-policy-and-issues/news/2022/06/13/ten-point-plan-to-restore-us-energy-leadership-fuel-economic-recovery|date=14 June 2022}}</ref> |
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During Biden's visit in [[Saudi Arabia]] on 16 July 2022, the US president failed to secure commitments for an immediate OPEC output rise as intended. With economic sanctions in place against Iran and Venezuela, energy analysts expect a tight petroleum market well into 2023. In contrast to the United States, European countries would like to see a return of [[Iran]] and [[Venezuela]] to the global oil market to ease inflationary pressures worldwide.<ref>{{Cite news|last1=Holland|first1=Steve|last2=Yaakoubi|first2=Aziz El|last3=Renshaw|first3=Jarrett|last4=Dahan|first4=Maha El|date=2022-07-16|title=Biden fails to secure major security, oil commitments at Arab summit|language=en|work=Reuters|url=https://www.reuters.com/world/middle-east/biden-hopes-more-oil-israeli-integration-arab-summit-saudi-2022-07-16/|access-date=2022-10-01}}</ref><ref>{{Cite web|title=France wants return of Iran, Venezuela to global oil market|url=https://www.aa.com.tr/en/energy/international-relations/france-wants-return-of-iran-venezuela-to-global-oil-market/35699|access-date=2022-10-01|website=www.aa.com.tr}}</ref> |
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In late August 2022, Saudi Arabia and OPEC announced another possible cut in oil output, [[Brent crude]] futures rose again significantly. Meanwhile, Iran accused the United States of procrastinating in efforts to revive Tehran's 2015 nuclear deal. At the same time, Europe continued to face disruptions in energy supplies due to damage to a pipeline system bringing oil from [[Kazakhstan]] through Russia.<ref>{{Cite news|last=Kearney|first=Laila|date=2022-08-23|title=Oil jumps nearly 4% on possible OPEC+ supply tightening|language=en|work=Reuters|url=https://www.reuters.com/business/energy/oil-prices-rise-after-saudi-says-opec-could-cut-output-2022-08-23/|access-date=2022-10-01}}</ref> |
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The energy crisis as well as economic sanctions against Russia's petrochemical industry have benefited the U.S. energy economy while Europe suffers. Exports of American LNG to Europe have more than doubled since 2021. According to the [[International Energy Agency]], US shipments of natural gas to Europe in June 2022 exceeded the amount Russia was supplying via pipelines.<ref>{{Cite web|last=Robertson|first=Harry|title=Energy traders are making a killing exporting US natural gas to Europe as prices soar – with some single shipments bringing in $200 million|url=https://markets.businessinsider.com/news/commodities/us-natural-gas-exports-europe-surge-energy-crisis-trader-profits-2022-8|access-date=2022-10-01|website=Markets Insider|language=en-US}}</ref> |
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On 5 October 2022, [[Russia]] and [[Saudi Arabia]] agreed to further cut crude oil output by 2 million barrels a day. The [[White House]] called the decision "shortsighted", and accused OPEC+ to align with Russia. Decreased supply could benefit Russia's petrochemical industry. The US would release oil from its strategic reserves according to government sources.<ref>[https://www.npr.org/2022/10/05/1126754169/opec-oil-production-cut "Russia and Saudi Arabia agree to massive cuts to oil output. Here's why it matters]" ''npr.org''. Retrieved 5 October 2022.</ref> |
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==== Haiti ==== |
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In Haiti, [[2018–2022 Haitian protests|protests]] triggered by rising cost of living and energy broke out in 2022.<ref>{{cite news |title=Haiti suffers deadly demonstrations against rise in fuel prices |url=https://www.lemonde.fr/en/international/article/2022/09/17/haiti-suffers-deadly-demonstrations-against-rise-in-fuel-prices_5997305_4.html |work=Le Monde |date=17 September 2022}}</ref><ref>{{cite news |title=Haiti reaches a breaking point as the economy tanks and violence soars |url=https://www.pbs.org/newshour/world/haiti-reaches-a-breaking-point-as-the-economy-tanks-and-violence-soars |work=PBS |date=4 October 2022}}</ref> |
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=== South America === |
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==== Ecuador ==== |
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In Ecuador, rising fuel prices led to protests by transportation union in Quito.<ref>{{cite web | url=https://www.lahora.com.ec/tungurahua/ambato-sectores-suman-paralizacion | title=Ambato, más sectores se suman a la paralización – Diario la Hora }}</ref> In June 2022, protests by students and workers against rising prices became widespread in what is known as the [[2022 Ecuadorian protests]]. |
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==== Panama ==== |
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Energy shortages were a cause of the [[2022 Panamanian protests]].<ref>{{Cite web |date=2022-07-15 |title=Protests in Panama impact shortages – Prensa Latina |url=https://www.plenglish.com/news/2022/07/15/protests-in-panama-impact-shortages/,%20https://www.plenglish.com/news/2022/07/15/protests-in-panama-impact-shortages/ |access-date=2022-07-19 |language=en-US}}</ref> |
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==== Peru ==== |
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[[File:Paro de transportistas en Iquitos (2022).jpg|thumb|[[2022 Peruvian protests]] due to increased fertilizer and fuel prices]] |
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In [[Peru]], effects from the [[COVID-19 pandemic in Peru|COVID-19 pandemic]] along with rising fertilizer and fuel prices as part of the [[economic impact of the 2022 Russian invasion of Ukraine|economic impact]] of the Russian invasion of Ukraine sparked the [[2022 Peruvian protests]], which resulted with the death of eight individuals and dozens injured. |
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== Responses == |
== Responses == |
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Revision as of 19:21, 17 October 2022
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National Balancing Point NBP (UK) natural gas prices
Europe TTF natural gas prices
United States Henry Hub natural gas prices
The 2022 global energy crisis began in the aftermath of the COVID-19 pandemic in 2021, with much of the globe facing shortages and increased prices in oil, gas and electricity markets.
Causes
Slow supply recover after pandemic
The COVID-19 pandemic in 2019–2020 caused a rapid drop in energy demand and a corresponding cut in oil production, and despite the 2020 Russia–Saudi Arabia oil price war, OPEC responded slowly to the demand recovery under new normal, causing a supply-demand imbalance. The 2021–2022 global supply chain crisis that further stressed the delivery of extracted petroleum.
Coal trade dispute
In December 2020, after months of restrictions, China fully blocked coal imports from Australia, which was China's largest source of imported coal.[1]
Climate abnormality impact on renewable energy
In 2021, Brazil's worst drought in almost a century threatened its electricity supply.[2][3] Brazil relies on hydropower for two-thirds of its electricity.[4]
Euractiv reported that European Commissioner for Climate Action Frans Timmermans told the European Parliament in Strasbourg that "about one fifth" of the energy price increase "can be attributed to rising CO2 pricing on the EU's carbon market".[5]
In 2022, Europe's driest summer in 500 years had serious consequences for hydropower generation and power plant cooling systems.[6][7][8] According to the New York Times, the drought "reduced hydropower in Norway, threatened nuclear reactors in France and crimped coal transport in Germany."[9] Record droughts in China and California also threatened hydropower generation.[10][11][12]
Russia-Ukraine military conflict
The Russian military buildup outside Ukraine and subsequent invasion have also threatened the energy supply from Russia to Europe, causing European countries to diversify their source of energy imports.[13][14] International sanctions during the Russo-Ukrainian War were introduced after the Russian annexation of the Crimea in 2014, and subsequently tightened after the February 2022 Russian invasion of Ukraine; later the new Nord Stream 2 pipeline's certification was also suspended. Russia reacted in late July 2022 and reduced gas deliveries to Germany through the strategic Nord Stream 1 pipeline.[15][16] Russia had interrupted the Nord Stream 1 pipeline flow in early September, precipitating an international gas supply crisis which was particularly felt in European gas markets.[17]
Global effects
![[icon]](/enwiki/wiki/File:Wiki_letter_w_cropped.svg){kind=small} | This section needs expansion. You can help by adding to it. (August 2022) |
2022 food crises
Natural gas is a significant key component in producing fertilizers.[18] The development of synthetic nitrogen fertilizer has significantly supported global population growth — it has been estimated that almost half of the world's population is currently fed as a result of synthetic nitrogen fertilizer use.[19]
Rising energy prices are pushing agricultural costs higher, contributing to increasing food prices globally.[20] The agriculture and food industries use energy for various purposes. Direct energy use includes electricity for automated water irrigation, fuel consumption for farm machinery and energy required at various stages of food processing, packaging, transportation and distribution. The use of pesticides and mineral fertilizers results in large quantities of indirect energy consumption, with these inputs being highly energy intensive to manufacture.[20][21] While the share varies considerably between regions – depending on factors such as weather conditions and crop types – direct and non-direct energy costs can account for 40% to 50% of total variable costs of cropping in advanced economies such as the United States. Higher energy and fertiliser prices therefore inevitably translate into higher production costs, and ultimately into higher food prices.[21]
Energy transition
Aside of inflationary pressures, the 2021/2022 energy crisis has also increased the use of coal in energy production worldwide. Coal use in Europe already increased by 14% in 2021, and is expected to rise another 7% in 2022. Soaring natural gas prices have made coal more competitive in many markets, and some nations have resorted to coal as a substitute for potential energy rationing in winter 2022/2023. With demand for coal increasing in Asia and elsewhere, global coal consumption is forecast to rise again by 0.7% in 2022 to 8 billion tonnes. Burning coal or petroleum products emits significantly higher amounts of carbon dioxide and air pollutants compared to natural gas. The return to coal slows the transition to greener and more sustainable energy sources. Both the United States and Russia are top exporters of natural gas and coal.[22][23]
Europe has been historically leading with regard to global climate policy, pledging to cut emissions to at least 55% below 1990 levels in the next 8 years. But sanctions on Russia are crushing global supplies of fossil fuels with drastic price increases. Russia's invasion of Ukraine in 2022 risks unravelling decades of hard work to reduce emissions on the European continent. After a long period of optimistic projections on reducing Europe's carbon footprint, governments there aren't keeping anything off the table, including reopening coal-fired power plants or upping oil imports, as well as prolonging the phase-out for nuclear energy.[24]
Responses
Overall, the response to this rising crisis have been to return to coal and other polluting energy sources, subsidizing prices, easing gas taxes, or even lowering the price of carbon dioxide emissions. These short-term solutions lower electricity bills but go exactly in the opposite direction of what is needed to prevent the 1.5 degree increase in temperatures, increasing the likelihood of a climate apocalypse.[25][26]
The UK government has turned to Qatar to seek a long-term gas deal to ensure a stable supply of liquefied natural gas (LNG) to the UK.[27] Prime Minister Boris Johnson asked Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar, for help during a meeting at the UN General Assembly in September 2021.[28][29] EU suspended an antitrust investigation into QatarEnergy in February 2022.[30]
In October 2021, U.S. producer Venture Global LNG signed three long-term supply deals with China's state-owned Sinopec to supply liquefied natural gas. China's imports of U.S. natural gas will more than double.[31]
On 28 October 2021, natural gas prices in Europe dropped by at least 12% after Gazprom announced it would increase supplies to Europe after Russian domestic storage sites were filled on about 8 November. Norway had increased gas production and lower coal prices in China also helped lower natural gas prices.[32][33]
Hungarian Prime Minister Viktor Orbán blamed a record-breaking surge in energy prices on the European Commission's Green Deal plans.[34] Politico reported that "Despite the impact of high energy prices, [EU Commissioner for Energy] Kadri Simson insisted that there are no plans to backtrack on the bloc's Green Deal, which aims to make the EU climate neutral by 2050."[35] Speaking at the COP26 climate summit in Glasgow, Czech Prime Minister Babiš denounced the European Green Deal,[36] saying that the European Commission "continues to propose dangerous policies such as the ban on combustible engines in 2035, or carbon allowances for transport and individual housing. Due to improper legislature and speculation, the price of emission allowances has gone out of control, resulting in the surging costs of electricity."[37]
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U.S. President Joe Biden's national security adviser Jake Sullivan released a statement calling on OPEC+ to boost oil production to "offset previous production cuts that OPEC+ imposed during the pandemic until well into 2022."[38] On 28 September 2021, Sullivan met in Saudi Arabia with Saudi Crown Prince Mohammed bin Salman to discuss the high oil prices.[39] The price of oil was about US$80 by October 2021, the highest since 2014.[40][41] USA delivered 16 billion cubic meters of LNG to Europe in January 2022, and 6 billion in February.[42]
Iranian oil minister Javad Owji said if U.S.-led sanctions on Iran's oil and gas industry are lifted, Iran will have every capability to tackle the global energy crisis.[43][44]
Qatar's energy minister Saad Sherida al-Kaabi stated that there "is a huge demand from all our customers, and unfortunately we cannot cater for everybody. Unfortunately, in my view, this is due to the market not investing enough in the [gas] industry."[45]
European Commission President Ursula von der Leyen said that "Europe today is too reliant on gas and too dependent on gas imports. The answer has to do with diversifying our suppliers ... and, crucially, with speeding up the transition to clean energy."[46][47]
European Commissioner for Climate Action Frans Timmermans suggested "the best answer to this problem today is to reduce our reliance on fossil fuels."[48]
In late October 2021, Russian ambassador Andrei Kelin denied that Russia is withholding gas supplies for political reasons. According to the ambassador, delivery of natural gas through Ukraine has been increased by up to 15% for November 2021, but it was unclear whether this increase would have an immediate effect on the natural gas supply in Europe. Furthermore, such increase in gas delivery was hindered by a lack of modernization of the Ukrainian gas pipelines, according to the source.[49]
On 13 July 2022, the Kremlin expressed hope that a visit by President Biden in Saudi Arabia to boost OPEC oil production would not foster anti-Russian sentiments there. Russia is the largest oil and gas exporter after Saudi Arabia and enjoys a highly valued cooperation with the Arab country in the framework of the OPEC group. But at current levels, major Gulf producers have little to spare, and Russia blames international sanctions for higher energy prices around the world.[50]
Since the June 2022 G7 meeting, plans had been circulating to cap the price of Russian energy commodities as initially suggested by U.S. Treasury Secretary Janet Yellen and E.U. Commission President Ursula von der Leyen, in order to lower price levels for Western nations and deprive Russia of its profits. After G7 finance ministers expressed their intention to implement a price cap, a Kremlin spokesman responded, "companies that impose a price cap will not be among the recipients of Russian oil." Energy analysts have also expressed skepticism that a price cap would be realistic because the coalition is "not broad enough"; OPEC+ called the plan "absurd". Likely the U.S. and the E.U. will attempt to follow through with the plan by limiting Russia's access to Western insurance services.[51]
See also
- 9-Euro-Ticket
- 1970s energy crisis
- Economic impact of the COVID-19 pandemic
- Energy crisis
- Fossil fuel phase-out
- 2022 food crises
- 2021–2022 inflation surge
- International sanctions during the 2022 Russian invasion of Ukraine
- 2020s commodities boom
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