Posted on 10/12/2021 6:24:54 AM PDT by LesbianThespianGymnasticMidget
Far from emerging from the COVID shock awash with fuel, as might be expected after an economic slowdown, the world is entering a new energy crisis the like of which hasn't been seen since the 1970s.
European and Asian gas prices are at an all-time high, the oil price is at a three-year high, and the price of coal is soaring on the back of energy shortages across China, India and Germany.
The surge in demand is being driven mostly by recovering economies and anticipated extreme weather across Europe and north-east Asia. China is stockpiling domestic coal and gas reserves, and Russia is reluctant to supply gas to Western Europe.
Closer to home, Australia's gas prices are soaring, but might soon plummet.
Petrol pandemonium
In Britain, a shortage of the truck drivers who move fuel has led to panic-buying amid fears of a shortage. After Brexit, many European truck drivers went back to their home countries and never returned.
Compounding Britain's problem was its so-called "windless summer" in which renewable power production was much lower than normal. This put a significant strain on electricity generation as around 24% of its power is produced by wind.
Britain has transitioned away from coal as an electricity source and with low emergency supplies will find it difficult to suddenly switch back to coal.
Prime Minister Boris Johnson remains committed to wind generation and says he wants the UK to become the "Saudi Arabia of wind power" with offshore wind farms generating enough electricity to power every UK home within a decade.
Oil on a roll
Oil prices have soared in response to the windless summer and British and German difficulties in getting access to Russian gas. Those increases will soon hit Australia which imports 80% of its petrol, diesel and jet fuel.
OPEC+ (OPEC and a Russia-led group of oil producers) have agreed to boost production, but only in measured steps.
If and when Britain and Germany resolve their gas supply issues with Russia, perhaps by mid-2022, gas and oil prices will slide.
This will put severe pressure on Australia's 20 to 30 lucrative long-term supply contracts with Japan, South Korea and Taiwan which expire in a few years.
It is possible that other nations in the Indo-Pacific investing heavily in their gas infrastructure, such as Vietnam and India, will pick up the slack.
Coal comfort
The crunch in the gas market is forcing countries to revert to coal for electricity generation and for industry. Thermal coal prices in Asia keep hitting record highs.
In Asia, there isn't enough coal to meet expected demand. A cold winter followed by a hot summer and stronger economic growth has led to greater Chinese demand. It is the main cause of an emerging electricity crisis in China.
China, which eased up on coal consumption a few months ago to meet emission targets, is back in the market as stockpiles run low. India faces a similar predicament as coal stockpiles are running low.
There is speculation China might do a U-turn on its unofficial ban on Australian coal and once again embrace Australian imports.
In Europe, the early closure of nuclear plants and record gas prices are set to boost coal use. The price for thermal coal is hitting record highs in Europe, and in Australia the price of Newcastle coal is up 250% and close to its 2008 record high.
Future in flux
The crisis suggests the transition to renewables will take longer than expected and be more complicated than expected.
It will cast a shadow over the COP26 UN climate change talks due to begin in Glasgow on October 31.
It’s going to be a hard winter.
Biden’s Dark Winter.
Trump’s fault.
Energy use is down and the Greens cannot even supply enough energy when demand is in the basement!
And even with all of that working for me I'm producing only 2/3rds of the power I consume. I wouldn't dream of trying to be "net-zero". When governments try to force green energy as a one-size-fits-all scenario and dissing all other energy sources, it's a complete failure.
Biden Happened.
What happened? Biden.
I was reviewing Solar power produced and consumed by residential consumers in Florida. On average, roof mounted solar cells produce only 1/3rd to 1/4th of the power that those homes consume.
Without incentives, solar cells lose money.
We got Bradonmized.
Dont forget the drought contributed to the lower hydroelectric power output.
Ugly.
This is exactly what the left has intended to do all along with their phony environmentalism: Destroy economies, blame the destruction on capitalism, and use the chaos as an excuse to impose socialism. It’s the old leftist strategy of creating a problem and blaming it on your opponent.
I have a 2.9Kw grid-tied solar system. Have had for 2 years. Have no net electrical usage for 6 months. Winter is a different story! Will be doing some tree trimming this fall once the leaves drop, and work on some insulation improvements.
Its always a mystery with the Left, isn't it?
Not really...they are clueless, evil, or a mixture of both. They're that kid in grade school that spends their time figuring out how to cheat, where if the same amount of time were spent studying, they would do just as well on the exam.
And even with all of that working for me I’m producing only
2/3rds of the power I consume. I wouldn’t dream of trying to
be “net-zero”.
*********
Solar power has limits and at least you realize that.
Biden happened.
When whacko environmentalist “believers” have the power to enact their destructive policies, they disrupt and eventually kill the energy industry. As predictable as the sunrise.
True, but it also decades of chicken sh!t politicians pandering to the Green movement.
It took a long time to get to this point and lots of us saw it coming.
You can’t dismantle your energy infrastructure without consequences.
Germany shutdown 60% or more of there nuclear power plant capacity in deference to their Green movement.
France at one point had 80% of their electric power supplied by nuclear power and are now bending to the Green movement and plan on phasing out of nuclear.
Political leadership is supposed to be wise and lead. Not so much of that is going on these days.
It takes a lot of energy to keep commenting on the green foolishness.
The ones in love with the idea play checkers when it requires chess skills to supply the world with power. Then there is the greed angle and the greed and stupidity in combination are the formula for disaster. The disaster is just getting started.
The windless summer is not a one off event. Texas’ disaster last winter is not a fluke, it will happen over and over and over.
Emergency storage by massive piles of penlight batteries? Who thinks that is going to work out well? Only in dreams and fantasy.
“The crisis suggests the transition to renewables will take longer than expected and be more complicated than expected.”
We won’t ever have abundant, cheap, and reliable power again until we put the engineers back in charge of building the power system and boot out the armies of lawyers, greenies, and activists.
Maybe people will wake up to the reality that their precious “renewables” are fine making 3% of our power, but going above that is disaster.
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