{"id":60135,"date":"2021-10-29T06:18:00","date_gmt":"2021-10-29T11:18:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60135"},"modified":"2021-10-29T06:18:00","modified_gmt":"2021-10-29T11:18:00","slug":"energy-demand-destruction-will-lead-to-global-recession-tellurian-chairman-warns","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60135","title":{"rendered":"Energy Demand Destruction Will Lead To Global Recession, Tellurian Chairman Warns"},"content":{"rendered":"
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Energy Demand Destruction Will Lead To Global Recession, Tellurian Chairman Warns<\/a><\/h3>\n<\/header>\n
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One month ago,\u00a0Goldman said\u00a0<\/a>that the one thing that could accelerate the resolution of Europe’s energy crisis was plain, simple “demand destruction” – i.e., a plunge in demand due to prices that were too high until the reduced demand leads to less supply and a lower price. Specifically, Goldman estimated “that the potential capacity for gas-to-oil substitution could be larger should gas rally further, of up to 1.35 mb\/d in power and 0.6 mb\/d in industry (in Asia and Europe), although such a large demand boost would prove too large for the oil market to absorb,\u00a0leading to a spike in prices to in turn achieve oil demand destruction, the ultimate solution to widespread energy scarcity.<\/strong>”<\/p>\n

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There is just one problem with this:\u00a0“demand destruction”<\/strong><\/em>, i.e., forcible shutdown of manufacturing facilities has direct cost on output.<\/p>\n

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