Energy Crunch

Belgius Capital Commentary

Belgius Capital

Energy Crunch

Climate change is a global emergency, or so we are now constantly informed. Indeed, for our species and many other species, it is.

Listening to Patrick Moore, a co-founder of Greenpeace, would give us a different angle and tell us that the planet has undergone many severe catastrophic climatic changes since time began and can be viewed on Youtube.

Greenpeace's Ex-President - Is Climate Change Fake? - Patrick Moore | Modern Wisdom Podcast 373

Fighting climate change nevertheless offers the prospect of creating millions of new jobs and a healthier environment by simply electrifying everything.

What will it take to transform our infrastructure, update our grid, and adapt our households to make this possible? Some Billionaires may contemplate escaping our human-induced and abused planet on private vanity rocket ships to the planets, but the rest of us are obliged to stay on Terra Firma and fight for the future.

A global energy crunch is now upon us almost as sudden as the Northern hemispheres Autumn, and don't blame the push for Renewables.

Causation is both the oncoming winter weather, the insanity of Government lockdowns that have created logistical and stupendous problems globally, with supply and bottlenecks evident in many locations.

Elsewhere the Environmental lobby and its worldwide push for renewables amid geopolitical maneuvers are nowhere near meeting future supply targets.

The quest for 'Cleaner Energy' only exacerbates the problem with both China and India struggling to meet targets. At the same time, rolling brownouts have become a regular occurrence as they scramble for coal [China depends 57% on it] as natural gas prices have risen 85% since the start of September.

In Europe, it's even worse, with natural gas prices up 130% in the same period [8 times since last year] as some commentators speculate that the price rises are mostly fear-driven as the winter season approaches. Anxiety has caused the markets to disconnect from the laws of supply and demand.

Last week President Putin sounded a calming note to Gazprom's European customers and consumers, stating that the State-owned company could easily increase the supply of gas.

Rapidly escalating energy prices are creating alarm among investors and Central Bankers as the inflationary pressures add to the supply and logistical problems induced by Government-mandated Covid regulations. Oil prices are forecast to rise to $100 a barrel, the highest since 2014 as prices at the petrol pump jump.

All things must pass, and so will this energy crunch