Energy Demand Destruction Will Lead To Global Recession, Tellurian Chairman Warns

[Tom Nolan + 2,443]

Charif Souki, Executive Board Chairman at U.S. LNG developer Tellurian said, “We are dealing not with a gas crisis, the gas is simply the leading horse, but we are dealing with an energy crisis”

“But if all fuels become too expensive then you ask people to start changing their lifestyles, start driving less, turning off the lights more often, not putting the air conditioning on, not heat your home."

“My great fear is the lack of planning is going to lead us to global recession.”

“Eventually, after the winter, gas prices will come back down to a more reasonable level. But at the same time oil prices will continue to increase to a more reasonable level, in order to find an equilibrium.”

https://www.zerohedge.com/energy/energy-demand-destruction-will-lead-global-recession-tellurian-chairman-warns

Energy Demand Destruction Will Lead To Global Recession, Tellurian Chairman Warns

by Tyler Durden

Thursday, Oct 28, 2021 - 10:00 PM

One month ago, Goldman said 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, leading to a spike in prices to in turn achieve oil demand destruction, the ultimate solution to widespread energy scarcity."...[ARTICLE continues]

[Tomasz + 1,608]

Well as for today trading we see this for first time in  probably more than 15 years. As far as I remember WTI was over Brent for long time but last time in very early years of this century 

 

Edited November 1, 2021 by Tomasz