The sudden energy crisis strains supply networks and geopolitics as the global economy recovers from the COVID-19 outbreak.
A particularly severe winter in Europe depleted the continent’s energy supplies, as well as a series of hurricanes that shut down Gulf oil refineries, deteriorating relations between China and Australia, and less wind across the North Sea.
“It radiates from one energy market to another,” said Daniel Yergin, author of The New Map: Energy, Climate, and the Clash of Nations.
“Governments are scrambling to get subsidies in place to avoid a tremendous political backlash,” he said.
“There’s a pervasive anxiety about what may or may not happen this winter because of something we have no control over, which is the weather.”
The world leaders prepare for the historic Cop26 meeting in the hopes of taking steps to mitigate climate change.
The crisis has been blamed on a perfect storm of circumstances, the most notable of which is the economic recovery from the epidemic, which occurred after governments spent less on fossil fuel extraction in the previous 18 months.
Fuel shortages are also harming Europe as the global economy recovers from the COVID-19 outbreak, which has resulted in a surge in energy demand around the world.
According to energy professionals, Europe is moving too swiftly away from fossil fuels before ensuring that renewable energy supplies are available.
Europeans are paying outrageous amounts for liquefied gas, and Lebanon has run out of centrally generated electricity.
Lebanon has been paralyzed by an economic crisis that has worsened as imported gasoline supplies have run out. As a result, since 2019, the Lebanese currency has depreciated by 90%.
Many Lebanese rely on private diesel generators, which are likewise in short supply. As a result, hundreds of local shops and companies have closed, forcing residents to rely on costly black market supplies, reported Daily Mail.
People have stood in line for miles to fill up their automobiles, resulting in chaotic situations rife with violence.
According to government data, less than half of the country’s 135 coal-fired power plants have fuel stockpiles of more than three days, falling short of federal recommendations of at least two weeks.
When worldwide demand for Chinese goods increased this year, China was the first to experience the effects of the oil crisis. As a result, some Chinese provinces are rationing electricity.
Power outages have been observed in southern Guangdong province, but they are most severe in the northeastern manufacturing regions of Heilongjiang, Jilin, and Liaoning.
A total of 16 provinces are estimated to be rationing energy due to a supply constraint, while no full-scale blackouts have occurred.
In response, Shanxi, China’s largest coal-producing province, has ordered its 98 coal mines to increase yearly output capacity by 61 million tons.
Shanxi will also enable 51 coal mines to continue operating despite having reached their maximum annual production levels.
Seventy-two mines in China’s second-largest coal province, Inner Mongolia, have been instructed that they can begin operating at increased capacities immediately as long as they maintain safe output.
India is running out of coal and has warned that its coal-fired power facilities could shut down in three days.
A gallon of ordinary gasoline in the United States was $3.25 on Friday, up from $1.27 in April.