"Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav

[Tom Nolan + 2,443]

"A Structural Rupture" - German Companies Shutting Down In Response To Record Energy Prices

by Tyler Durden

Wednesday, Aug 31, 2022 - 11:45 AM

It's not just European smelters shutting down due to soaring energy prices: the entire German economy is about to get its plug pulled.

While a handful of macro tourists rejoice that record European year-ahead electricity prices plunged by 50% to levels not seen since... last week...

[ARTICLE CONTINUES]

https://www.zerohedge.com/markets/structural-rapture-german-companies-shutting-down-response-record-energy-prices

[Tom Nolan + 2,443]

EU Declares Energy Crisis 'Emergency', The US Will Not Be Immune

by Tyler Durden

Wednesday, Aug 31, 2022 - 10:45 AM

Authored by Mike Shedlock via MishTalk.com,

European Commission president Ursula von der Leyen declares an energy emergency. The crisis will not be contained to Europe.

[ARTICLE CONTINUES]

https://www.zerohedge.com/geopolitical/eu-declares-energy-crisis-emergency-us-will-not-be-immune

[Boat + 1,323]

So your saying we can’t cut off exports? We can’t be called supremacy? What can we do besides buy Chinese 80” tv’s. Oh yea, go electric and export oil. Sleepy may change his mind and set a nat gas price for N America. After all we have nat gas in abundance and we’re not killing Ukrainians. Little bro Israel has gas and dosent kill Ukrainians. Canada has nat gas and doesn't kill Ukrainians. Catch the theme? Ukrainians will have their gas and feed Europe. Russia better kiss China butt. 

[Tom Nolan + 2,443]

EXCERPT

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

https://www.zerohedge.com/commodities/europe-has-no-real-alternatives-russian-gas-ex-aramco-evp

Europe Has No Real Alternatives To Russian Gas: Ex-Aramco EVP

by Tyler Durden

Thursday, Sep 01, 2022 - 01:45 AM

Echoing what Zoltan Pozsar said in his latest must read note, the former executive vice president at Saudi Aramco, Sadad Al-Husseini, told CNBC on Monday that there’s not enough capacity in the world to replace Russia’s gas supply to the European Union, while Moscow has plenty of markets to sell its energy to.

“The US doesn’t have the LNG capacity to replace Russia’s exports to Europe,” he said, noting that power bills across the EU are set to soar this winter. He did not comment on China reselling Russian LNG to Europe although we expects others will soon. 

According to Al-Husseini, the lack of freely available supply could lead to serious problems on the global energy market. “This situation is a new world, and it’s not a very good one for energy,” he warned.

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

He also said that while Russia may lose Europe as an end-market, there are “plenty of alternative markets” for Russian energy, including China, Japan, or India, that eagerly flount Western sanction, realizing that the Biden admin is increasingly toothless in punishing sanctions violators.

Meanwhile, Europe does not have alternative energy sources, he said, “while the US is maxed out already, North Africa has got problems,” and OPEC is also running out of spare capacity.

“So, it’s a global problem,” he said.

The official suggested that, while the Russian economy may suffer under Western sanctions, the rest of the world will be suffering with them.

However, he stressed that “Russia may recover a lot sooner than Europe.”

[Boat + 1,323]

2 hours ago, Tom Nolan said:

EXCERPT

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

https://www.zerohedge.com/commodities/europe-has-no-real-alternatives-russian-gas-ex-aramco-evp

Europe Has No Real Alternatives To Russian Gas: Ex-Aramco EVP

by Tyler Durden

Thursday, Sep 01, 2022 - 01:45 AM

Echoing what Zoltan Pozsar said in his latest must read note, the former executive vice president at Saudi Aramco, Sadad Al-Husseini, told CNBC on Monday that there’s not enough capacity in the world to replace Russia’s gas supply to the European Union, while Moscow has plenty of markets to sell its energy to.

“The US doesn’t have the LNG capacity to replace Russia’s exports to Europe,” he said, noting that power bills across the EU are set to soar this winter. He did not comment on China reselling Russian LNG to Europe although we expects others will soon. 

According to Al-Husseini, the lack of freely available supply could lead to serious problems on the global energy market. “This situation is a new world, and it’s not a very good one for energy,” he warned.

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

He also said that while Russia may lose Europe as an end-market, there are “plenty of alternative markets” for Russian energy, including China, Japan, or India, that eagerly flount Western sanction, realizing that the Biden admin is increasingly toothless in punishing sanctions violators.

Meanwhile, Europe does not have alternative energy sources, he said, “while the US is maxed out already, North Africa has got problems,” and OPEC is also running out of spare capacity.

“So, it’s a global problem,” he said.

The official suggested that, while the Russian economy may suffer under Western sanctions, the rest of the world will be suffering with them.

However, he stressed that “Russia may recover a lot sooner than Europe.”

Obvious bs. There is a list of countries that shows typical nat gas demand and what percentage comes from Russia. What we don’t know is what those numbers will be when winter hits. Like how much reserves did each country procure. His much alternative energy is available like coal. How much can cuts in use shave off demand. You keep posting the trash and we’ll track the real world. Read the Texas plan to stop blackouts and deaths? Yep the plan is to make nat gas more resilient and huge added reserves. Not a thing about renewables. It’s a nat gas problem in Texas but a Republican/Putin man would lie in a second. This is the way it is. No problem, Trump prepped us years ago for the lying age years ago. 

[Boat + 1,323]

2 hours ago, Tom Nolan said:

EXCERPT

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

https://www.zerohedge.com/commodities/europe-has-no-real-alternatives-russian-gas-ex-aramco-evp

Europe Has No Real Alternatives To Russian Gas: Ex-Aramco EVP

by Tyler Durden

Thursday, Sep 01, 2022 - 01:45 AM

Echoing what Zoltan Pozsar said in his latest must read note, the former executive vice president at Saudi Aramco, Sadad Al-Husseini, told CNBC on Monday that there’s not enough capacity in the world to replace Russia’s gas supply to the European Union, while Moscow has plenty of markets to sell its energy to.

“The US doesn’t have the LNG capacity to replace Russia’s exports to Europe,” he said, noting that power bills across the EU are set to soar this winter. He did not comment on China reselling Russian LNG to Europe although we expects others will soon. 

According to Al-Husseini, the lack of freely available supply could lead to serious problems on the global energy market. “This situation is a new world, and it’s not a very good one for energy,” he warned.

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

He also said that while Russia may lose Europe as an end-market, there are “plenty of alternative markets” for Russian energy, including China, Japan, or India, that eagerly flount Western sanction, realizing that the Biden admin is increasingly toothless in punishing sanctions violators.

Meanwhile, Europe does not have alternative energy sources, he said, “while the US is maxed out already, North Africa has got problems,” and OPEC is also running out of spare capacity.

“So, it’s a global problem,” he said.

The official suggested that, while the Russian economy may suffer under Western sanctions, the rest of the world will be suffering with them.

However, he stressed that “Russia may recover a lot sooner than Europe.”

You call growing exports from the US maxed out. The projection is continued growth. Even Canada might get it together and fill Putins market. China might just take Russian fuels. Putin has shown the paper bear. Lot of growl but a brand new untrained army has stopped them. Now even Crimea Russian loyalists are getting shelled and it won’t end. Ukraine with Europe as its market will be the rebuild plan. 

[Tom Nolan + 2,443]

9 hours ago, Tom Nolan said:

EXCERPT

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

https://www.zerohedge.com/commodities/europe-has-no-real-alternatives-russian-gas-ex-aramco-evp

Europe Has No Real Alternatives To Russian Gas: Ex-Aramco EVP

by Tyler Durden

Thursday, Sep 01, 2022 - 01:45 AM

Echoing what Zoltan Pozsar said in his latest must read note, the former executive vice president at Saudi Aramco, Sadad Al-Husseini, told CNBC on Monday that there’s not enough capacity in the world to replace Russia’s gas supply to the European Union, while Moscow has plenty of markets to sell its energy to.

“The US doesn’t have the LNG capacity to replace Russia’s exports to Europe,” he said, noting that power bills across the EU are set to soar this winter. He did not comment on China reselling Russian LNG to Europe although we expects others will soon. 

According to Al-Husseini, the lack of freely available supply could lead to serious problems on the global energy market. “This situation is a new world, and it’s not a very good one for energy,” he warned.

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

He also said that while Russia may lose Europe as an end-market, there are “plenty of alternative markets” for Russian energy, including China, Japan, or India, that eagerly flount Western sanction, realizing that the Biden admin is increasingly toothless in punishing sanctions violators.

Meanwhile, Europe does not have alternative energy sources, he said, “while the US is maxed out already, North Africa has got problems,” and OPEC is also running out of spare capacity.

“So, it’s a global problem,” he said.

The official suggested that, while the Russian economy may suffer under Western sanctions, the rest of the world will be suffering with them.

However, he stressed that “Russia may recover a lot sooner than Europe.”

 

[Tom Nolan + 2,443]

https://oilprice.com/Energy/Energy-General/The-Energy-Crisis-Is-Putting-Europes-Solidarity-To-The-Test.html

The Energy Crisis Is Putting Europe’s Solidarity To The Test

By Ag Metal Miner - Sep 01, 2022, 3:00 PM CDT

• Europe’s energy crisis is straining the solidarity of European economies.
• Energy rationing across the region could last for several years.
• Zinc and aluminum smelters are curbing production due to soaring energy prices.

Join Our Community

A post in the Financial Times this week reported on comments made by Shell’s chief executive Ben van Beurden. In the article, Ben van Beurden focused mainly on the criticality of Europe’s energy crisis. “That this is going to be somehow easy, or over, I think is a fantasy that we should put aside,” Van Beurden stated. The Shell chief executive also warned that Europe might need to ration access to energy for several years, as the crisis confronting the region will likely last more than one winter. No doubt, this will test the solidarity of European economies – especially as they try to maintain a common collective in their response to Russia’s invasion of Ukraine.

Russia moved early to limit gas supplies to Europe this summer. As a result, Europe could not build up any gas inventory ahead of the winter season. With each turn of the supply screw, gas flow lessens, and market prices rise.

Energy Crisis in Europe Causing Energy Costs to Sky-Rocket

According to the FT Europe’s benchmark, gas prices rose almost a third last week. In fact, they hit more than €343 ($345) per megawatt hour on Friday. These numbers are more than 30 times higher than prices two years ago and more than ten times their current level in the US.

Related: Russian Shelling Forces Shutdown Of Ukraine Nuclear Reactor

This will have inevitable consequences in both the short and long term. For example, limited supplies will force European governments to ration energy, with the main priority being keeping homes warm as the winter bites. Indeed, governments have already drawn up rationing plans at both the state and EU level. However, they can only estimate the severity of the winter weather and the level of demand.

Rising energy costs have meanwhile already impacted energy-intensive producers. This includes closures of aluminum and zinc smelting facilities, cement works, and fertilizer plants. Many experts warn that a combination of energy costs and rationing could severely impact production in the months ahead.

In the longer term, if van Beurden’s predictions prove right, high-power costs in Europe will undermine the region’s ability to export. This will prolong a recession already considered a forgone conclusion over the winter.

By AG Metal Miner

More Top Reads From Oilprice.com:

• Investors Caught Off Guard By Chengdu Covid Lockdown
• Nuclear Power Could Cut Global Emissions By Half
• The U.S. Power Grid Can’t Support Its Climate Pledges

[Tom Nolan + 2,443]

https://oilprice.com/Latest-Energy-News/World-News/Filling-Gasoline-Cars-Could-Become-Cheaper-Than-Charging-EVs-In-The-UK.html

Filling Gasoline Cars Could Become Cheaper Than Charging EVs In The UK

By Tsvetana Paraskova - Sep 01, 2022, 9:30 AM CDT

Due to skyrocketing energy prices, Britons could soon face higher costs for charging their electric vehicles (EVs) at home than filling up gasoline-fueled cars, The Washington Times reports.

The high energy and electricity prices that could undermine the growth in EVs uptake in the UK and globally could be a cautionary tale for what could be the future in the U.S. if the energy transition is pushed to accelerate without accounting for whether EVs and renewable energy sources could replace fossil fuels, analysts tell The Washington Times.

“For the U.S., this actually gets to an underlying fallacy of a lot of people that are pushing electric vehicles: they assert electric vehicles are cheaper because they assume electricity prices are going to stay cheap,” Kenny Stein, policy director of the Institute for Energy Research, told The Washington Times.

Last week, the UK energy regulator Ofgem said the new price cap for household energy bills would be $4,113 (£3,549) per year, an 80-percent hike in the energy price cap aimed at shielding consumers from price swings, promising to plunge millions more into energy poverty.

The chief executive of Ofgem, Jonathan Brearley, has also warned that another hike in the price cap would be coming in January next year, raising household energy bills much further, to above $6,952 (£6,000), according to recent forecasts. That would be almost double on the latest hike.

The price cap currently stands at $2,285 (£1,971) per year, based on typical use for the average household, which is already a 54% increase on the $1,480 (£1,277) per year that was in place between October 2021 and March 2022. 

Many British households are already struggling with paying their bills, and they are accumulating more debt, too. The government is helping, but more help would be needed for the higher bills.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

• The Pros And Cons Of Deep Sea Mining
• High Fuel Prices Drive Record Profits For Chinese Oil Giants
• Fake News Or Fundamentals: What’s Driving Oil Prices?

[Tom Nolan + 2,443]

https://oilprice.com/Latest-Energy-News/World-News/EU-Hits-Gas-Storage-Target-Ahead-Of-Deadline.html

EU Hits Gas Storage Target Ahead Of Deadline

By Irina Slav - Sep 01, 2022, 5:00 AM CDT

The European Union’s gas storage facilities have been filled to 80 percent, the bloc’s Commissioner for Energy Kadri Simson said in a tweet.

The EU had set itself a deadline in October to have its gas storage caverns 80 percent full ahead of the start of the heating season amid greatly weakened energy supply security and reduced Russian gas flows via the Nord Stream 1.

Simson’s announcement follows a similar one made by European Commission President Ursula von der Leyen earlier this week, celebrating the achievement. However, it has come at a price and it will not ensure a sufficient supply for the European Union throughout the winter.

U.S. liquefied natural gas imports were instrumental for the EU’s ability to fill up its storage earlier than its deadline but it has pushed the bloc’s gas bill ten times higher than what the EU normally pays for gas.

Demand reduction is also on the agenda. Earlier this week, the head of Germany’s energy regulator Klaus Mueller said the European Union’s largest economy would need to reduce its gas consumption by at least a fifth in order to have a chance of getting through winter. Even if its gas storage caverns reach a fill level of 95 percent, it would not be enough for three months of consumption, Mueller said.

According to the Bloomberg report about von der Leyen celebrating the early filling of gas storage caverns, the amount in them could only cover between 25 and 30 percent of gas consumption during the winter.

“We will meet the goal before the heating season despite very difficult situation on the energy market, Gazprom’s dirty games around Nord Stream 1 and several member states being already completely cut off from Russian supplies,” Jerzy Buzek, a member of the European Parliament, told Bloomberg.

“Full gas storages will certainly not solve all our current problems, but they do allow European citizens to feel more secure and confident before the coming winter.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

• BP Looks To Restart The Midwest’s Largest Refinery
• LNG Prices Haven’t Hit A Ceiling Just Yet
• UK Household Energy Bills Will Triple On New Price Cap

[Tom Nolan + 2,443]

 

[Tom Nolan + 2,443]

German Foreign Minister Says Support For Ukraine Will Continue "No Matter What Voters Think"

by Tyler Durden

Thursday, Sep 01, 2022 - 08:15 AM

https://www.zerohedge.com/geopolitical/german-foreign-minister-says-support-ukraine-will-continue-no-matter-what-voters-think

 

German FM: I will put Ukraine first “no matter what my German voters think” or how hard their life gets.

Edited September 1, 2022 by Tom Nolan

[Tom Nolan + 2,443]

 

[Tom Nolan + 2,443]

It seems that some European nations are getting stressed out with the energy crisis...  ...and now we have Poland pissed at Germany...

Germany Responds After Poland Demands $1.3 Trillion In WWII Reparations

by Tyler Durden

Thursday, Sep 01, 2022 - 07:20 PM

Germany has responded after Poland demanded $1.32 trillion in reparations over losses suffered during WWII.

On Thursday, Poland's Deputy Prime Minister Jaroslaw Kaczynski said that Warsaw would officially demand reparations from its largest trade partner and a fellow member of both the EU and NATO...

...Poland's combative stance towards Germany has intensified after Russia's invasion of Ukraine....

https://www.zerohedge.com/geopolitical/germany-responds-after-poland-demands-13-trillion-wwii-reparations

Edited September 2, 2022 by Tom Nolan

[Tom Nolan + 2,443]

 

[Tom Nolan + 2,443]

European Stainless Steel Mills Are Closing Due To Energy Crisis

By Ag Metal Miner - Sep 02, 2022, 2:00 PM CDT

• Stainless steel mills are closing across Europe due to the  ongoing energy crisis.
• Around three million tons of Europe’s stainless steel capacity is at risk.
• This sort of “commodity” standoff is less than ideal.

https://oilprice.com/Metals/Commodities/European-Stainless-Steel-Mills-Are-Closing-Due-To-Energy-Crisis.html

[Tom Nolan + 2,443]

European Commission Calls For Price Cap On Russian Natural Gas

By Irina Slav - Sep 02, 2022, 10:00 AM CDT

• European Commission head Ursula von der Leyen is calling for a price cap on Russian pipeline natural gas.
• According to the EC head, such a price cap would interfere with President Vladimir Putin’s attempts to manipulate the European energy market. 
• "A gas price cap can be proposed at European level, and there also is a legal foundation at European level to skim profits temporarily as an emergency measure at a time of crisis."

https://oilprice.com/Energy/Natural-Gas/European-Comission-Calls-For-Price-Cap-On-Russian-Natural-Gas.html

[Tom Nolan + 2,443]

World’s Second-Largest Steelmaker Closes European Plant

By Tsvetana Paraskova - Sep 02, 2022, 11:30 AM CDT

The world’s second-largest steelmaker, ArcelorMittal, is the latest industrial company to announce a plant closure in Europe due to soaring gas and energy prices. 

ArcelorMittal will shut one of its two blast furnaces at its steelworks site in Bremen, Germany, from the end of September until further notice, due to the “exorbitant rise in energy prices,” the company said in a statement on Friday. 

The high energy prices are undermining the competitiveness of steel production and the company is taking this step in Germany because it cannot operate all plants economically, ArcelorMittal said.

The steel giant also cited weak market demand, a negative economic outlook, and persistently high CO2 costs in steel production as reasons for its decision.  

“The high gas and electricity costs are putting a heavy strain on competitiveness. On top of that, from October onwards, there will be the German government's planned gas levy, which will further burden us,” ArcelorMittal Germany’s CEO Reiner Blaschek said. 

Blaschek called on politicians to urgently take action to “get energy prices under control immediately”.  

Aluminum smelters in Europe have also been closing in recent weeks, due to sky-high energy prices.  

In Germany, one of every six industrial companies feels forced to reduce production due to high energy prices, a survey by the Association of German Chambers of Industry and Commerce, DIHK, showed at the end of July. Nearly a quarter of the companies forced to reduce production had already done so by end-July, and another one-quarter are in the process of scaling back production due to sky-high energy prices, according to the survey of 3,500 companies from all sectors and regions in Germany. 

The energy-intensive industries and firms are particularly hit, as 32 percent of the companies plan to or have already started to reduce production and even halt entire production lines, the DIHK survey showed.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

• OPEC+ To Boost Production Target By 100,000 Bpd In September
• How China Could Send LNG Prices Into The Stratosphere
• How Russian Oil Is Making Its Way From Europe To Asia

https://oilprice.com/Latest-Energy-News/World-News/Worlds-Second-Largest-Steelmaker-Closes-European-Plant.html

[Tom Nolan + 2,443]

https://www.zerohedge.com/political/amid-historic-energy-crisis-bojo-tells-brits-buy-new-kettle

Amid Unprecedented Cost-Of-Living Crisis, BoJo Tells Brits "Buy A New Kettle"

by Tyler Durden

Saturday, Sep 03, 2022 - 06:35 AM

As electricity bills hyperinflate due to dwindling natural gas supplies from Russia, half of all UK households risk being pushed into energy poverty in the coming months. Brits face a historic energy crisis that is morphing into a cost-of-living nightmare while disgraced and outgoing prime minister Boris Johnson told people this week to purchase a new efficient "kettle" to save on their power bill. 

"If you have an old kettle which takes ages to boil, it may cost you £20 to replace it – but if you get a new one, you'll save £10 a year every year on your electricity bill," Johnson said. 

Buy a new kettle and save £10 on your £3,549 energy bill, says Johnson....

[Tom Nolan + 2,443]

https://www.zerohedge.com/energy/darker-colder-europeans-warned-unprecedented-power-failures-winter

Darker & Colder: Europeans Warned Of "Unprecedented" Power Failures This Winter

by Tyler Durden

Saturday, Sep 03, 2022 - 06:00 AM

Authored by Paul Joseph Watson via Summit News,

Europeans are being warned of ‘unprecedented’ power failures this winter as the energy crisis brings a foreseeable future that will be colder and darker.

“There is an increased risk of a lack of power this winter,” Klaus Winther, deputy director at Energinet, the Danish national transmission system operator for electricity and natural gas, told TV2.

Winther says the crisis will herald a new era of energy consumption predicated on rationing to prevent blackouts.

A “perfect storm” of soaring prices, a hot dry summer, and a collapse in the confidence of energy security means power grid failures are now a real possibility.

“The production of electricity cannot keep up with the demand, and this increases the probability of a power failure,” said Winther.

Although insisting that “power cuts are the absolutely last tool we have in the drawer,” Winther warned that individual distribution companies may be forced to shut off electricity supplies for hours at a time to avoid longer blackouts.

Meanwhile, Brian Vad Mathiesen, professor of energy planning at Aalborg University, said Danes may have to adopt a 1970’s oil crisis-style mentality and get used to living in colder and darker houses.

“We must create energy-saving campaigns on a scale we cannot imagine, and everyone must take responsibility,” he said.

Meanwhile, in neighboring Sweden, the prospect of sustained power outages has been increased from “low” to “real,” with the more populated areas most at risk.

“This winter, at its coldest, there is a real risk that we will have to interrupt electricity consumption in parts of southern Sweden,” strategic operations manager for Swedish power grid operator Svenska Kraftnät, Erik Ek, said in a press release.

As we document in the video below, all of this was avoidable.

There was a peace deal between Ukraine and Russia in place back in early April, but it was deliberately derailed by Boris Johnson and the Biden administration.

[Tom Nolan + 2,443]

https://www.zerohedge.com/geopolitical/worst-has-yet-come-civil-unrest-set-surge-socioeconomic-pressure-builds-report-warns

"Worst Has Yet To Come": Civil Unrest Set To Surge Worldwide As Socioeconomic Pressure Builds, Report Warns

by Tyler Durden

Friday, Sep 02, 2022 - 06:20 PM

Soaring food, energy, and shelter inflation have led to what could be a new era of civil unrest worldwide. Pockets of unrest have been observed in Sri Lanka, Peru, Kenya, Ecuador, Iran, and Europe. New research forecasts a broader wave of discontent is just ahead. 

While this topic of developing social unrest is hardly new, we discussed it in late 2020, "Why Albert Edwards Is Starting To Panic About Soaring Food Prices," and Rabobank's Michael Every noted in April 2021: "We Are Edging Closer To A Biblical Commodity Price Increase Scenario." 

Earlier this year, Rockefeller Foundation President Rajiv warned that a "massive, immediate food crisis" is nearing. The UN said this summer that the world is "marching towards starvation" with an increased likelihood of civil unrest and political violence.

[article continues]

[Tom Nolan + 2,443]

https://www.zerohedge.com/energy/german-experts-warn-grid-instabilityconventional-power-plants-needed-long-time-come

German Experts Warn Of Grid Instability..."Conventional Power Plants Needed For A Long Time To Come"

by Tyler Durden

Monday, Aug 29, 2022 - 05:30 AM

Authored by Pierre Gosselin via NoTricksZone.com,

Germany’s massive, subsidized expansion of electricity generation from renewable sources has squeezed out conventional generation units out of the market. Two experts warn of growing grid instability.

 

Quo Vadis, Grid Stability?

Original article at Die kalte Sonne

The conclusion of the two is very alarming. Here, too, not a word about “storage facilities galore. Here, reality clashes with the wishful thinking of some green energy protagonists who think there is enough storage and that all that needs to be done is to change the “mindset,” as Patrick Graichen put it.

[ARTICLE CONTINUES]

[Tom Nolan + 2,443]

A Minsky moment is a sudden, major collapse of asset values which marks the end of the growth phase of a cycle in credit markets or business activity.

https://www.zerohedge.com/markets/sweden-austria-start-bailing-out-energy-companies-triggering-europes-minsky-moment

Sweden, Austria Start Bailing Out Energy Companies Triggering Europe's "Minsky Moment"

by Tyler Durden

Saturday, Sep 03, 2022 - 12:00 PM

Last weekend, Credit Suisse repo guru published what may have been the most insightful snippet of the entire European energy crisis (to date) when he extended the infamous "Minsky Moment" framework to Europe, and specifically Germany, which he said "can’t cover its payments without Russian gas and the government is asking citizens to conserve energy to leave more for industry." He then elaborated that "Minsky moments are triggered by excessive financial leverage, and in the context of supply chains, leverage means excessive operating leverage: in Germany, $2 trillion of value added depends on $20 billion of gas from Russia… …that’s 100-times leverage – much more than Lehman’s." (Zoltan's entire note is a must read for everyone with a passing interest in what comes next).

But while Germany still pretends it can somehow avoid a devastating crisis this winter besides bailing out Uniper, one of the country’s biggest utilities (after all, admission would make Trump's 2018 warning accurate and prescient, and everyone knows that according to Western intellectual snobs Trump can't possibly ever be correct), other European nations are succumbing to what Zoltan dubbed a "supply-chain Minsky moment."

On Wednesday it was Austria, which announced it would bail out the country's main energy supplier with a two-billion-euro ($2 billion) loan, the AFP reported. Chancellor Karl Nehammer said the loan to Wien Energie was an "extraordinary rescue measure" to ensure its two million customers - mainly Vienna households - continue to receive electricity. It will run until next April.

Wien Energie asked for a bailout this weekend after suffering financial trouble amid soaring energy prices and speculation the company mismanaged their funds. Nehammer said Wien Energie, which is owned by Vienna, would have to answer questions as to how they got into trouble.

"The goal was to help people quickly... It has now been agreed that all of these questions, which are rightly raised, must be answered promptly by Vienna (and) the energy supplier," he told reporters.

The company - almost entirely dependent on Russian gas - said earlier this week that it had been hit by the "price explosion" which it has not yet passed on to customers, assuring it remained solvent. As part of its rescue, the company is expected to pass through soaring costs, which means a historic price shock is coming to Austria next... and soon Sweden.

Following in Austria's footsteps, on Saturday morning Sweden announced it will give emergency liquidity support to electricity producers after the government said it feared Russia’s decision to halt gas deliveries to Europe could place its financial system under severe strain.

Prime minister Magdalena Andersson said the government would offer hundreds of billions of kroner in support to electricity producers, the FT reported. The PM warned that, left unchecked, rising collateral demands for electricity producers could ripple through the main Nasdaq Clearing market in Stockholm and, in the worst case, spark a financial crisis.... just as Zoltan warned almost half a year ago.

Her remarks came after Russia said on Friday evening that it would no longer supply gas via the Nordstream 1 pipeline. That announcement came after energy markets had closed for the weekend.

“Yesterday’s announcement not only risks leading to a ‘war winter’ but also threatens our financial stability,” Andersson said, standing alongside Sweden’s financial regulator, central bank governor and finance minister at an emergency press conference on Saturday.

Sweden’s dramatic action underscored the seriousness of the situation facing Europe as it scrambles to secure enough energy ahead of the winter and tries to avoid the spread of distress among electricity producers.

As we reported previously, Germany already bailed out one of the country’s biggest utilities, Uniper, and its majority shareholder, Finnish energy group Fortum, in turn asked the government in Helsinki for support. Fortum warned on Monday that its collateral requirements had risen by €1bn to €5bn in the previous week, and that a default by a smaller player would cause “severe disturbances to the Nordic power system”.

Andersson said the support would apply to all Nordic and Baltic players, and would need approval by the Swedish parliament’s finance committee on Monday.  Even the country's central bank was forced to chime in: "We need to isolate this in one market so it doesn’t infect the financial sector,” said Stefan Ingves, governor of the Riksbank.

While Swedish authorities said they saw no immediate risk to financial stability (translation: financial stability is on the verge of collapse), but were worried that otherwise-solvent companies could struggle to find enough liquidity, causing potential ripple effects. “Russia is waging an energy war against Europe to divide us. But we will not let Putin succeed,” Andersson said.

Andersson’s comments come a week before parliamentary elections in Sweden with polls pointing to a surge in the anti-Immigrant, Eurosceptic Sweden Democrats, who are set to become the nation's 2nd largest party. She said her centre-left government stood ready to act, just as it did over the Covid-19 pandemic, but it's unclear if she will even get the votes to be in majority.

Erik Thedéen, head of Sweden’s Financial Supervisory Authority, said power prices in Sweden had risen 11-fold in the past year, leading to a jump in collateral demands. He added that without liquidity support electricity producers could face bankruptcies and large losses that could lead to the collapse of the clearing house. “It is under very severe stress,” he said.

In hopes of easing Eurpope's "Minsky Moment" energy crisis, last week, European Commission President Ursula von der Leyen said Monday the bloc was preparing to take "emergency" action to reform the electricity market and bring prices under control. Also, on Friday, G7 members unanimously decided to impose price caps on Russian oil imports (an absolutely idiotic scheme as explained yesterday, and one which will send oil prices sharply higher). In response, Russia shocked markets when, late on Friday, it said that the previously scheduled resumption of natgas supplies to Europe via the Nord Stream 1 pipeline won't happen due to an "accidental" oil leak. This ensures that European nat gas and power prices are set to hit new all time highs come Monday.

 

[Tom Nolan + 2,443]

https://www.zerohedge.com/geopolitical/europe-brink-70000-czech-protesters-flood-prague-over-energy-crisis

"Europe On The Brink:" 70,000 Czech Protesters Flood Prague Over Energy Crisis

by Tyler Durden

Saturday, Sep 03, 2022 - 01:00 PM

More than 70,000 Czechs are protesting in Prague, the capital, demanding the ruling coalition take a neutral stance on the Ukraine war to ensure energy supplies from Russia aren't cut off ahead of winter. Protesters are outraged at the European Union for sanctions against Russia that have sparked soaring electricity bills and triggered a cost-of-living crisis. 

"The aim of our demonstration is to demand change, mainly in solving the issue of energy prices, especially electricity and gas, which will destroy our economy this autumn," event organizer Jiri Havel told local news iDNES and quoted by Reuters. 

The protest, held at Wenceslas Square in the heart of the capital, comes one day after the Czech government survived a no-confidence vote over opposition claims of inaction to protect citizens against energy hyperinflation. 

Emerging political instability shows how Europe's energy crisis fuels discontent among households. We noted a new study Friday that warned civil unrest could flare up in parts of Europe over the next six months because of the deteriorating macro backdrop of high inflation. 

Czechs are tired of Western sanctions on Russia that have sparked a devastating energy crisis. They want Czech interest first over the EU's and demand cheap Russian gas and neutrality. 

~~~~

“The entire Wenceslas Square demands the resignation of the government! We will demand that the current cabinet, which is working against us, resign”: A 70,000-strong rally was held in Prague Also demand lower gas and electricity prices and neutrality on the conflict in Ukraine  [VIDEO]

IMAGES...

"This is not our war" — anti-government rallies are taking place in Prague right now.

Western sanctions are backfiring, and some Europeans are awakening to how their governments sacrificed their livelihoods for NATO's proxy fight against Russia in Ukraine. What's happening in Prague could spread like wildfire throughout the EU. 

Edited September 3, 2022 by Tom Nolan

[Tom Nolan + 2,443]

2 minutes ago, Tom Nolan said:

https://www.zerohedge.com/geopolitical/europe-brink-70000-czech-protesters-flood-prague-over-energy-crisis

"Europe On The Brink:" 70,000 Czech Protesters Flood Prague Over Energy Crisis

by Tyler Durden

Saturday, Sep 03, 2022 - 01:00 PM

More than 70,000 Czechs are protesting in Prague, the capital, demanding the ruling coalition take a neutral stance on the Ukraine war to ensure energy supplies from Russia aren't cut off ahead of winter. Protesters are outraged at the European Union for sanctions against Russia that have sparked soaring electricity bills and triggered a cost-of-living crisis. 

"The aim of our demonstration is to demand change, mainly in solving the issue of energy prices, especially electricity and gas, which will destroy our economy this autumn," event organizer Jiri Havel told local news iDNES and quoted by Reuters. 

The protest, held at Wenceslas Square in the heart of the capital, comes one day after the Czech government survived a no-confidence vote over opposition claims of inaction to protect citizens against energy hyperinflation. 

Emerging political instability shows how Europe's energy crisis fuels discontent among households. We noted a new study Friday that warned civil unrest could flare up in parts of Europe over the next six months because of the deteriorating macro backdrop of high inflation. 

Czechs are tired of Western sanctions on Russia that have sparked a devastating energy crisis. They want Czech interest first over the EU's and demand cheap Russian gas and neutrality. 

~~~~

“The entire Wenceslas Square demands the resignation of the government! We will demand that the current cabinet, which is working against us, resign”: A 70,000-strong rally was held in Prague Also demand lower gas and electricity prices and neutrality on the conflict in Ukraine  [VIDEO]

IMAGES...

"This is not our war" — anti-government rallies are taking place in Prague right now

The United States deliberately caused the further destruction of Europe knowing the consequence of Russian sanctions and by inciting the Russian-Ukraine incident of February 24, 2022 with its many, many, many prior actions.   The U.S. doesn't care about the people in any country.  The Authoritarians only care about an AGENDA.

Edited September 3, 2022 by Tom Nolan