After a virus pandemic an energy disease

The energy crunch that started in Europe has going around the world like a domino game.

The news channels on several stations showed how people went in search of wood-burning stoves. It should not be overlooked that even pellet stoves are more polluting than natural gas central heating.
It is a clear sign of how such a scarcity on the market and the consequent rise in energy prices can contribute to the pollution of our environment.

China is slowing production of smartphones and other key global exports due to a lack of affordable power, which as a result brings higher prices and a longer waiting time to get those goods as a consumer. China has no need to ease policy; and does not seem to bother about the environment, as long as they can increase their production and power over the world. In China, probably most Chinese do not dare to raise their voices because the apparatus of the government is watching them.

Winter is approaching, with colder temperatures, which will not induce the OPEC countries to increase their oil stocks and lower prices. It is to their advantage for those prices to remain high. But not only they! The governments in Great Britain and Europe are also licking their lips at the increased revenues from their VAT and excise duties. This is probably why these politicians have not yet come up with a reassuring solution.

28 member states of the European Union, as of 2015

The Spanish government has been fighting on several fronts to invest the issue of electricity prices at European level. According to Sánchez, it is now a matter of waiting for the steps taken at the meeting of energy ministers and the proposal of the European Commission, which will present a series of measures to tackle the issue next week.  After Spain launched the debate on energy prices at the European level at the EU summit in Slovenia, the head of government called for a “step-by-step” approach and insisted that the European Commission should negotiate on behalf of member states to buy energy.

It is high time for the European Union to oblige its statesmen to protect its citizens and to call the large corporations that supply electricity and gas to order. It is a matter of keeping energy prices in check because otherwise, we will see an escalation of increased prices in a majority of products for which gas or electricity must be used to make them or to grow food.

Shaun Richards writes:

We are experience what I believe will be something of a nexus event and it is already in play. {This energy price and inflation crunch of 2021 is upon us}

He continues to look at the effect of such higher energy prices:

We have already noted the impact of higher prices and energy intensive industries such as steel and cement must be reeling. The Energy Information Agency has a list.

Food: Food, beverage, and tobacco product manufacturing
Pulp and paper. Paper manufacturing, printing and related support activities
Basic chemicals: Inorganic chemicals, organic chemicals (e.g., ethylene propylene), resins, and agricultural chemicals; includes chemical feedstocks
Refining Petroleum: refineries and coal products manufacturing, including coal and natural gas used as feedstocks
Iron and steel: Iron and steel manufacturing, including coke ovens
Nonferrous metals: Primarily aluminum and other nonferrous metals, such as copper, zinc, and tin
Nonmetallic minerals: Primarily cement and other nonmetallic minerals, such as glass, lime, gypsum, and clay products.

They may also be asked to stop producing although for certain areas such as food I am sure you can see the problem. So it does not look as if there will be much growth to go around and maybe another decline. {This energy price and inflation crunch of 2021 is upon us}

Many people had hoped that after the collapse of the Corona crisis, we would be able to witness a revival of the market. But this energy crisis brings a new inflationary spectre that could prove fatal for many companies. The stick of bankruptcy is ready behind the door.

One wonders what politicians are doing to push for a reduction in taxes on vital energy and to stop supply companies from charging sky-high prices.

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Preceding

EU Climate and Energy Framework and Roadmap for global climate agreement

Fast-rising energy prices attract China to capitalise on them

No time yet to relax the CoViD-19 restriction measures

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