{"id":63526,"date":"2022-09-17T10:04:00","date_gmt":"2022-09-17T15:04:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63526"},"modified":"2022-09-17T10:04:11","modified_gmt":"2022-09-17T15:04:11","slug":"63526","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63526","title":{"rendered":"Energy Shock"},"content":{"rendered":"
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ENERGY SHOCK<\/a><\/h3>\n<\/div>\n<\/div>\n
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The world is in energy shock.<\/p>\n

European imported coal prices increased 421% before Russia invaded Ukraine. German electric power price increased 518%. European natural gas jumped 765% and Asian spot LNG, 957%.\u00a0 Since then, it\u2019s gotten even worse.<\/p>\n

U.K. natural gas futures price has increased +$99.86 (+574%) from $17.41 to $117.27 per mmBtu just since June 8 (Figure 1).<\/p>\n

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Figure 1. U.K. natural gas futures price has increased +$99.86 (+574%) from $17.41 to $117.27 per mmBtu since June 8. Source: MarketWatch, CME & Labyrinth Consulting Services, Inc.<\/figcaption><\/figure>\n

Now Europe\u2019s energy crisis is on a path to even worse outcomes.<\/p>\n

Russia announced on\u00a0September 4<\/a>\u00a0that gas supplies to Europe via the Nord Stream 1 pipeline would not resume in full until the sanctions against Russia were lifted. Finland\u2019s Economic Affairs Minister\u00a0stated<\/a>\u00a0,<\/p>\n

\u201cThis has had the ingredients for a kind of a Lehman Brothers of energy industry.\u201d
\n\u2013Mika Lintil\u00e4<\/p><\/blockquote>\n

Many governments are planning to subsidize consumers with price caps and to help industry with loans. My friend and colleague Nate Hagens recently\u00a0noted<\/a>\u00a0that,<\/p>\n

\u201cEurope is committing economic suicide.\u201d
\n\u2013Nate Hagens<\/p><\/blockquote>\n

That is because these bailouts are happening at a time of economic contraction, high inflation and rising interest rates. That means increased and unproductive debt at a time that states cannot afford its service except with more debt.<\/p>\n

French President Emmanuel Macron recently\u00a0stated<\/a>,<\/p>\n

\u201cWhat we are currently living through is a kind of major tipping point or a great upheaval \u2026 we are living the end of what could have seemed an era of abundance\u2026the end of the abundance of products of technologies that seemed always available.\u201d
\n\u2013Emmanuel Macron<\/p><\/blockquote>\n

Meanwhile, OPEC+ has decided to cut production by\u00a0100,000 barrels of oil per day<\/a>\u00a0reversing 15 months of output increases. Although oil is relatively less expensive for Europeans than natural gas and coal, many countries have begun using\u00a0diesel<\/a>\u00a0as a substitute to generate electric power.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

ENERGY SHOCK The world is in energy shock. European imported coal prices increased 421% before Russia invaded Ukraine. German electric power price increased 518%. European natural gas jumped 765% and Asian spot LNG, 957%.\u00a0 Since then, it\u2019s gotten even worse. U.K. natural gas futures price has increased +$99.86 (+574%) from $17.41 to $117.27 per mmBtu […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,5],"tags":[8195,1997,265,25704],"class_list":["post-63526","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-geopolitics","tag-art-berman","tag-economic-sanctions","tag-energy-crisis","tag-opec-2"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63526"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63526\/revisions"}],"predecessor-version":[{"id":63528,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63526\/revisions\/63528"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}