Pak Sahafat – An American publication, presenting a report on the energy crisis caused by the Ukraine war around the world, especially in Europe, wrote that you really don’t understand how bad things can get in Europe this year.
According to Pak Sahafat News Agency, “Fortune” magazine by writing this report by “Tristan Bowe” pointed out the ripple effect of the war in Ukraine on the global markets and added that nowhere is this crisis more evident and more dangerous than in Europe, where their strategy of cheap Russian gas has backfired.
According to this publication, with the limitation of Russian energy products, the price of natural gas in Europe more than doubled during this year and caused a severe blow to consumers and companies. Electricity bills tripled in many places. The monthly bill of some coffee shops and restaurants increased from 2,000 euros last year to the current price of 7,000 euros, and large industries began to lay off workers and cut costs due to high electricity bills.
Fortune describes the situation in Europe as so dire that governments that previously shunned fossil fuels and nuclear power are desperately reopening coal plants and nuclear sites and nationalizing utilities to save them from bankruptcy.
Read more:
Rashatodi: Europeans should not be happy with America’s support to endure the harsh winter
With the current conditions, this American magazine still considers Europe to be in its good days, even though on the eve of winter and more demand for gas, the European energy market has never been so vulnerable. The author of this article believes that even the smallest increase in energy demand anywhere in the world could bring entire sectors of European manufacturing industry to a complete shutdown, leaving European economies with a wave of unemployment, high prices and, most likely, general unrest and discord between European countries.
Tatiana Mitrova, a member of the Global Energy Policy Center at Columbia University, told Fortune magazine: Prices are historically high and we have never seen a situation like this. This will be quite painful.
Pennylake, an energy analyst, also stated that the expansion of natural gas infrastructure is expensive and requires years of investment, and the result will not be achieved until the summer of next year. Also, 4 other experts stated in a conversation with Fortune that at least until the summer of 2023, suppliers are unlikely to be able to increase the transfer to Europe and replace Russian gas with a sufficient amount.
In concluding the actions of European countries, including France, Spain and Germany, to increase gas reserves before the weather gets colder, Fortune magazine wrote that the stability of European gas reserves depends on a mild winter, because if the weather gets colder, it can increase demand from European reserves.