TN

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

Recommended Posts

On 10/15/2022 at 7:58 AM, footeab@yahoo.com said:

If you would open your eyes, you would note FORBES had nothing to do with writing that travesty other than sucking down the $$$ to print what someone else wrote which is in DIRECT contradiction with China's actual policy evidenced by what they are DOING, not what they say they ***might*** do. 

So you still cant answer my question that if not coal what transitional energy source will China be using?

Share this post


Link to post
Share on other sites

7 hours ago, Rob Plant said:

So you still cant answer my question that if not coal what transitional energy source will China be using?

ooooo my bad... Time to hold your hand down the yellow brick road.  They won't use a transitional power source that follows the energy intermittent curve of solar/wind.  They will dump the excess energy just as they already are doing today.  Solar/Wind are jobs programs for the CCP.  Producing energy is 2nd. 

They already said: They will try pumped hydro storage for however much they can realistically do for whatever percentage of intermittent energy from wind/solar they will achieve(limited).  They are currently building plenty of nuclear power as well and more than likely will surpass USA in nuclear power in the very near future commissioning ~4 units a year.  Probably already surpassed France. 

Anyone with a functioning brain is building nuclear/coal/ng for whatever source they actually can grab. 

 

Share this post


Link to post
Share on other sites

https://oilprice.com/Latest-Energy-News/World-News/German-Government-May-Have-To-Inject-Another-39-Billion-In-Energy-Giant-Uniper.html

German Government May Have To Inject Another $39 Billion In Energy Giant Uniper

By Tsvetana Paraskova - Oct 20, 2022, 2:30 PM CDT

The German government may have to pour another up to $39 billion (40 billion euros) in saving the country’s largest natural gas importer, Uniper, on top of a multi-billion euro rescue package and nationalization, German business daily Handelsblatt reported on Thursday, quoting financial and government sources.  

Last month, the German government, Uniper, and the company’s majority shareholder, Finland-based firm Fortum, agreed on a plan to nationalize the energy giant, aimed at preventing a collapse of the German energy and gas suppliers. Germany will own 99% of Uniper after the nationalization, which involves a capital increase of $7.9 billion (8 billion euros), is completed.

Germany, Europe’s biggest economy, aims to save its energy companies which have been amassing losses with the lack of contracted Russian gas supply and the high price they have had to pay on the spot market to replace lost Russian volumes.

Since the July $15 billion bailout of Uniper, losses at the German company have continued to mount as the energy crisis in Germany and Europe has worsened.

But Uniper now may need another liquidity injection after the government scrapped an idea to introduce a gas levy to all consumers, which would have gone to energy companies.

The rescuing of the biggest gas importer in Germany is becoming increasingly expensive for the government, which may have to splash a small to mid-double-digit sum in euros. In total, the new rescue package could cost the government another $9.8 billion (10 billion euros) to $39 billion (40 billion euros), a source familiar with the discussions told Handelsblatt.

After the scrapping of the idea of a gas levy, Uniper will now need additional liquidity assistance, the newspaper reported. The German government could come up as soon as next week with a new concept on how to further help Uniper, according to Handelsblatt’s sources.    
By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Share this post


Link to post
Share on other sites

Good read Tom:

The same thing is happening in the U.S. With completely ridiculous energy and civil upheaval.

I truly believe that Russia or China will ignite a war. It seems that the needle is leaning that way.

China has for the last decade stolen blueprints, tooling, and software to put their slave labor to build ships.

It appears that some Americans are short-sighted and getting their pieces of silver thrown their Country under the bus.

Share this post


Link to post
Share on other sites

Too much time on your hands Tom. 

Share this post


Link to post
Share on other sites

https://www.zerohedge.com/commodities/uk-grid-operator-offers-households-money-not-use-appliances-amid-energy-crisis

K Grid Operator Offers Households Money To Stop Using Appliances Amid Energy Crisis

Tyler Durden's Photo
by Tyler Durden
Saturday, Oct 22, 2022 - 07:45 AM

The National Grid warned Britons of winter power blackouts earlier this month if it can't import enough natural gas and electricity from other parts of Europe. According to Daily Mail, the grid operator developed a new scheme to prevent the worst-case scenario of power outages by offering households equipped with smart meters to turn off appliances during peak demand times. 

National Grid's scheme pays households up to £20 per day if they don't use energy-intensive appliances, such as electric ovens and stoves, washing machines, tumble dryers, televisions, microwaves, and even video game consoles, between 4 pm and 7 pm or 2 pm until 9 pm over the next five months. 

They will be advised to use washing machines, tumble dryers, ovens, dishwashers and other appliances outside those periods so boffins can measure how much energy is saved on the grid when it is at its busiest. If the entire proposed £3 per kwh rebate if passed on to Britons by their supplier, over five months this could mean around £240 off their bills in total. --Daily Mail 

2022-10-21_07-36-26.png?itok=gjthS4Dp

The grid operator hopes the 'demand flexibility service' will save 2GW of electricity -- equivalent to powering 1 million homes -- during peak demand hours to thwart supply and demand imbalances that could result in power rationing

"But the scheme relies on users having a controversial smart meter, a device which automatically transmits your energy usage to your provider," Daily Mail said. 

Remember in the US, over the summer, when households in Colorado could not control their own smart thermostats after the local power company digitally seized them to prevent people from increasing cooling demand during a heatwave. There are risks when using anything smart. 

This winter could be reminiscent of power outages experienced in the 1970s across the UK if power generators cannot get enough NatGas to operate.

Ahead of the cold season, we've pointed out that European households have returned to burning wood, coal, and even trash to heat their homes. Western sanctions against Moscow are backfiring and risk sending tens of millions of Europeans not just into energy poverty but back a couple of centuries in progress. Thank you, NATO. 

Share this post


Link to post
Share on other sites

https://oilprice.com/Energy/Energy-General/Europe-May-See-Forced-De-Industrialization-As-Result-Of-Energy-Crisis.html

Europe May See Forced De-Industrialization As Result Of Energy Crisis

By Irina Slav - Nov 03, 2022, 7:00 PM CDT

  • European industries including ferroalloys, fertilizer plants and specialty chemicals are shutting down as a result of the ongoing energy crisis.
  • Certain industries may not come back, even if the energy crisis eases.
  • An increasingly tight regulatory environment is another reason for de-industrialization in Europe.

The European Union has been quietly celebrating a consistent decline in gas and electricity consumption this year amid record-breaking prices, a cutoff of much of the Russian gas supply, and a liquidity crisis in the energy market.

Yet the cause for celebration is dubious: businesses are not just curbing their energy use and continuing on a business-as-usual basis. They are shutting down factories, downsizing, or relocating. Europe may well be on the way to deindustrialization.

That the European Union is heading for a recession is now quite clear to anyone watching the indicators. The latest there—eurozone manufacturing activity—fell to the lowest since May 2020.

The October reading for S&P Global’s PMI also signaled a looming recession, falling on the month and being the fourth monthly reading below 50—an indication of an economic contraction.

In perhaps worse news, however, German conglomerate BASF said last month it would permanently downside in its home country and expand in China. The announcement served as a blow to a government trying to juggle energy shortages with climate goals without extending the lives of nuclear power plants.

“The European chemical market has been growing only weakly for about a decade [and] the significant increase in natural gas and power prices over the course of this year is putting pressure on chemical value chains,” said BASF’s chief executive, Martin Brudermueller, as quoted by the FT, in late October.

Related: Prosecutors Allege Glencore Flew Cash Bribes To West Africa

Yet it is worth noting that the energy crisis was not the only reason for BASF’s plans to shrink its presence at home and grow abroad. Increasingly tighter EU regulation was also a factor behind this decision, Brudermueller said.

Other industries also seem to have problems with new EU regulations. The trade body for the steel and aluminum industries, which have also suffered significantly from the energy cost inflation, recently proposed that the EU takes a gradual approach with its new Cross-Border Adjustment Mechanism, also known as the import carbon tax.

The CBAM was conceived as a way of leveling the playing field for European industrial businesses subjected to strict emission regulation that makes its production costlier compared to the production of countries with laxer emission standards. 

Yet it would also make important feedstock for the European steel and aluminum industries costlier, too, adding to the pain these industries are already feeling because they are also among the most energy-intensive ones.

A tenth of Europe’s crude steel production capacity has already been idled, according to estimates from Jefferies. All zinc smelters have curbed production, and some have shut down. Half of the primary aluminum production has shut down as well. And in fertilizers, 70 percent of factories have been idled because of the energy shortage.

Chemical plants are also curbing their activities, ferroalloy furnaces are going cold, and plastics and ceramics manufacturing is shrinking as well.

Some of these businesses might choose to eventually relocate to a place with cheaper and more widely available sources of energy, contributing to the deindustrialization process in Europe. As for the best candidate for this relocation, according to some observers, it is the United States, with its abundant gas reserves, rising production, and friendly investment climate.

Meanwhile, one thing has become crystal clear: reduced energy consumption in Europe’s industrial sectors is really no cause for celebration. If anything, it is a cause for concern and urgent action on the part of decision makers.

The gas price cap the EU agreed on recently might help a little, but since it is tied to lower consumption, it is not really a solution for businesses looking to stay in business. It is a life support system.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

  • Like 1

Share this post


Link to post
Share on other sites

FguLdW2XgAImvhP.jpg

  • Like 1

Share this post


Link to post
Share on other sites

https://oilprice.com/Energy/Energy-General/The-Price-Cap-Era-And-The-Demise-Of-The-Free-Energy-Market.html

The Price Cap Era And The Demise Of The Free Energy Market

By Irina Slav - Nov 07, 2022, 7:00 PM CST

  • The G7 plan to put a price cap on Russian crude is at odds with free market principles.
  • If Russia goes through with its plan to stop selling oil to capping countries, this might result in a further cut in its oil production.
  • Price-capping initiatives open the door to more consistent market intervention in the future.

Share this post


Link to post
Share on other sites

https://oilprice.com/Latest-Energy-News/World-News/Energy-Bills-In-Europe-Are-90-Higher-Than-Last-Year.html

Energy Bills In Europe Are 90% Higher Than Last Year

By Irina Slav - Nov 08, 2022, 1:02 AM CST

Electricity and gas prices are soaring across Europe, with bills close to double from last year in most European capitals, according to new data from the Household Energy Price Index—a monthly tracker of energy prices for households across 33 European capitals, including the 27 EU member states and several non-members.

According to the data collected for the HEPI, natural gas bills in Europe have gone up by as much as 111 percent over the past year, with electricity prices up by an average of 69 percent. Taken together, Euronews calculates these two make for a total 90-percent increase in household energy bills over the past year.

"Significantly higher [energy prices] compared to one year ago ... can be attributed to a combination of factors, such as increased demand connected to post-pandemic economic recovery and extraordinary weather conditions, the record-high prices for natural gas, and high CO2 emissions allowances," the authors of the latest HEPI report noted.

The high energy bills are creating headaches for European governments: strikes and protests are multiplying and disgruntlement with energy policies is growing. The cost of living in most of Europe is already exorbitant because of the energy crisis and this crisis is only going to get worse after the EU embargoes on Russian oil and then fuels come into effect.

In some parts of Europe, according to the latest HEPI report, energy prices have reached record highs but in others, prices have actually fallen, at least in October. The news is not as good as it looks at first glance: the decline was a result of government intervention, i.e. energy subsidies.

There have been a lot of subsidies as European governments try to alleviate the financial pain on households and businesses to avoid further disgruntlement. Germany alone will be spending some $200 billion on such coping measures, including a cap on energy prices up to a certain level of consumption.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Share this post


Link to post
Share on other sites

https://www.zerohedge.com/economics/uk-announce-stealth-tax-raid-pensions

UK To Announce A Stealth Tax Raid On Pensions

Tyler Durden's Photo
by Tyler Durden
Tuesday, Nov 08, 2022 - 04:45 AM
 
‘The State can’t fix all your problems’ said Sunak
42bn - Brexit divorce bill
9bn - lost to Covid fraud
32bn - lost taxes due to Brexit trade hit
37bn - track and trace
40-50bn - cost of Truss lunacy
The state IS the problem.

Share this post


Link to post
Share on other sites

https://oilprice.com/Energy/Energy-General/UK-Citizens-Pay-The-Highest-Electricity-Bills-In-The-World.html

UK Citizens Pay The Highest Electricity Bills In The World

By City A.M - Nov 16, 2022, 11:00 AM CST

  • A study on government electricity and gas price data reveals that Brits pay the world's highest energy bills.
  • Norway is the country with by far the biggest increase in electricity prices worldwide
  • The UK’s energy price cap was recently raised from 28p to 34p per kWh.

New research reveals that the UK has the highest electricity bills. Brits pay more for their power than anywhere else on the planet.

A new study looked at Government data on electricity and gas prices from the past five years to analyse the impact of the worsening cost of living crisis and discover which countries have had the biggest year-on-year increase in energy prices. The data, compiled by BOXT, was shared with City A.M. today

The UK’s energy price cap was recently raised from 28p to 34p per kWh.

Much like the rest of the world, prices have increased due to reduced supply from Russia due to the Ukraine conflict, as well as the after-effects of the coronavirus pandemic.

Ireland

The UK’s neighbours in the Republic of Ireland have the second highest electricity cost, paying 18.99p per kWh. That’s 53 per cent more expensive than the average of these 24 countries.

However, prices are slightly more affordable when it comes to gas in Ireland, which stands at 5.21p per kWh.

The countries with the highest electricity prices 

Rank

Country

Price – pence per kWh

1

United Kingdom

19.31

2

Ireland

18.99

3

Spain

18.51

3

Belgium

16.34

3

Japan

15.64

6

Australia

14.01

7

Switzerland

14.00

8

Netherlands

13.98

9

Germany

13.58

10

Czech Republic

12.69


Residents of Spain are paying an average of 18.51p per kWh. Electricity prices in Spain recently hit a historical high and were recently capped at €130 (£112) per megawatt hour, down from €210 (£181).

Norway is the country with by far the biggest increase in electricity prices worldwide – 91 per cent increase in electricity cost in pence/kWh since 2016. 

Top 10 countries with the biggest electricity bill price increase:

Rank

Country

5 year difference

1

Norway

91 per cent

2

Finland

37 per cent

3

United Kingdom

35 per cent

3

Czech Republic

35 per cent

3

Denmark

35 per cent

6

Greece

31 per cent

7

Netherlands

29 per cent

8

France

28 per cent

9

Poland

23 per cent

10

Ireland

20 per cent

 

The second highest electricity rises are in Finland – Since 2016, Finnish residents have seen their electricity bills increase by almost two-fifths (37%) on average.

Tied in third place are the Czech Republic, Denmark, and the United Kingdom, with a 35% increase in electricity prices. 

By CityAM

More Top Reads From Oilprice.com:

Share this post


Link to post
Share on other sites

https://www.zerohedge.com/political/german-meat-industry-warn-empty-supermarket-shelves-another-40-jump-meat-prices

German Meat Industry Warn Of Empty Supermarket Shelves, Another 40% Jump In Meat Prices

Tyler Durden's Photo
by Tyler Durden
Thursday, Nov 17, 2022 - 04:00 AM

Authored by John Cody via Remix News,

The German meat industry has warned of impending supply bottlenecks, especially concerning pork, and a board member is putting at least some of the blame on Germany’s current left-wing government, which is well-known for its attacks on meat and efforts to transition to a plant-based food supply.

“In four, five, six months, we will have nothing on the shelves,” predicts Hubert Kelliger, head of group sales at the large butcher Westfleisch and also a member of the board of the Meat Industry Association (VDF), according to Die Welt.

One of the main factors affecting Germany’s meat supply, according to Kelliger, is the reduction of fattening pigs from livestock farmers. Others farmers have simply given up on production and are going bankrupt.

“That inevitably means there will be less stock in the coming months,” said Kellinger, which could result in consumers seeing more empty shelves but also a significant increase in prices.

“Whether that will be 20, 30, or 40 percent cannot be quantified today — but it will increase significantly again,” said Kellinger. Such an increase would already be on the back of already substantial increases. Germany has experienced an overall 40 percent increase in food prices this year, including a 73 percent increase in potatoes. Further price jumps ahead could be disastrous for German consumers.

However, a dramatic increase in meat prices may actually fit with the agenda of the German government, which has been actively promoting a switch to a plant-based diet. Kellinger was not short on criticism for the government on the subject.

“The current federal government would like to abolish animal husbandry and switch the diet in Germany to vegetables and oatmeal,” he said; he, however, warned that despite ideology from the government, “it’s also a fact that over 90 percent of people in Germany still buy and eat meat.”

To back up his claim, he referred to analyses by GfK consumer researchers. In addition, a survey from 2016 found that 83 percent of Germans eat meat several times a week and over a quarter of the German population eats meat every single day.

Kelliger also slammed Federal Minister of Food and Agriculture Cem Özdemir, from the Green Party, for promoting a meat tax.

“We should eat less meat overall and make sure it comes from animals that are kept in a species-appropriate manner,” Özdemir told t-online.

He advises “adapting meat consumption to planetary boundaries and for the sake of our health.”

While Green politicians have condemned meat eating, the social reality is different, with nearly the entire German population eating meat on a regular basis. However, agricultural and green policies are stifling German meat production, making Germany wholly dependent on meat from foreign countries; this is creating a new dependence similar to Germany’s reliance on Russian gas, which turned out to be a catastrophic mistake.

“Germany is now the largest meat importer in Europe,” says Gereon Schulze-Althoff, VDF board member and senior sustainability and quality manager at the slaughterhouse Tönnies. “We are now at a point where we can calculate when we will no longer be able to provide ourselves with meat.”

Share this post


Link to post
Share on other sites

(edited)

https://oilprice.com/Energy/Energy-General/Which-European-Countries-Will-Suffer-The-Most-From-The-Energy-Crisis.html

Which European Countries Will Suffer The Most From The Energy Crisis?

By Haley Zaremba - Nov 17, 2022, 10:00 AM CST

  • Europe’s energy crisis has left millions in fuel poverty.
  • While the continent will likely make it through this winter without plunging into catastrophe, the coming years will be difficult. 
  • Countries in southern and eastern Europe have been the hardest hit so far, while Switzerland and Norway have come out relatively unscathed.

So far, Europe’s energy crisis has not been as bad as we had feared. After gas prices soared in the wake of Russia’s invasion of Ukraine, things have stabilized. Consumers have responded to skyrocketing energy prices by lowering demand, the continent has managed to fill its liquefied natural gas (LNG) storage containers, and an unseasonably warm autumn has allowed people to keep their heating bills relatively low. Gas prices have fallen from $100 per million British thermal units in August to $39. The Brent crude oil benchmark has dropped from its post-pandemic peak of $139 in March to $93. Headlines about the end of the European energy crunch have abounded. But they may have spoken too soon. 

As the days grow colder, the European energy supply will once again grow tight. Ironically, the situation may be worsened by the recent respite of energy tensions. “Analysis suggests that complacency is dangerous,” a recent Economist article states. “Things could get very bad, very fast.” The Economist analysis includes three possible trajectories for European energy markets during the winter, and none of them are good.  

The first simulated scenario assumes that the tense political relations between Russia and Europe do not deteriorate even further, but that the situation remains more or less the same. This is to say that the Nord Stream pipeline that transports LNG from Russia to Germany remains closed and Europe follows through with its embargo on Russian crude oil and restrictions on insuring the vessels that carry it. This is a rather ideal scenario for Europe, in that it “triggers a crisis but not a catastrophe.” Supplies will be tight and prices will be painfully high, but Europe will make it through the winter without the wheels falling off. The second scenario assumes escalation and supposes that Russia completely shuts off the flow of LNG to Europe and causes the continent tens of billions of dollars in extra costs. The third, most extreme scenario supposes that Russia gives up entirely on diplomacy and holding on to fossil fuel revenues and destroys Europe’s gas import infrastructure leading to an “excruciating squeeze.” In this model, Europe’s annual import-gas bill nears $1 trillion and still faces extreme energy shortages through 2024.  Clearly, even in the best scenario, Europe has a long, cold winter ahead – and then years of energy security troubles and delicate diplomacy to manage after that. The outlook is extremely grim for European citizens who will have to bear a large part of these costs in order to keep their homes heated. Projections show that 26 million people in the United Kingdom alone are expected to sink into energy poverty over the winter months – that’s one in three households. And the UK will probably be rather well off compared to many other European countries.

Related: Are Nickel Prices Poised For A Breakout?

For countries that were relatively wealthy before the energy crisis, skyrocketing prices will be painful, but they will be even more crushing for the many European countries that had trouble keeping the heat on even before the Russian invasion of Ukraine. “In the European Union, nearly seven percent of the population was not able to heat their home properly in 2021,” the World Economic Forum recently reported. Countries in southern and eastern Europe were among the most energy-impoverished last year, and this year is certain to be much, much grimmer for those nations. 

According to data from last year, Bulgaria was the country with the highest rate of fuel poverty in the European Union, with nearly one in four Bulgarians (23.7 percent) struggling to pay their energy bills. Bulgaria was followed by Lithuania (22.5 percent) and Cyprus (19.4 percent). By contrast, the richest countries had less than 1% of energy poverty. These were Switzerland (0.2 percent) and Norway (0.8 percent). “When data for 2022 comes out,” the World Bank report stated, “we can expect these figures to be worse.” And even under the best-case scenario, according to the Economist, the numbers for 2023 and 2024 will likely make 2022 look like a cakewalk. 

By Haley Zaremba for Oilprice.com

More Top Reads From Oilprice.com:

Edited by Tom Nolan

Share this post


Link to post
Share on other sites

https://oilprice.com/Energy/Energy-General/How-Europes-Energy-Crisis-Could-Turn-Into-A-Food-Crisis.html

How Europe’s Energy Crisis Could Turn Into A Food Crisis

By Irina Slav - Nov 20, 2022, 4:00 PM CST

  • Runaway energy inflation has taken a toll on European industry, but another threat is looming.
  • Europe’s two biggest fertilizer suppliers, Russia and Belarus have retaliated against European sanctions by cutting off fertilizer exports.
  • The fact remains that the global food chain, especially its European links, is not in a good place right now.

Runaway energy price inflation has wreaked havoc on European industrial activity, with the heaviest consumers taking the brunt. Aluminum and steel smelters are shutting down because of energy costs. Chemical producers are moving to the United States. BASF is planning a permanent downsizing.

There is, however, a bigger problem than all these would constitute for their respective industries. Fertilizer makers are also shutting down their plants. And fertilizer imports are down because the biggest suppliers of fertilizers for Europe were Russia and Belarus, both currently under sanctions.

Both countries have retaliated against the sanctions by cutting off exports of fertilizers to Europe, and European officials repeating that fertilizer exports are not sanctioned is not really helping. 

Russia accounts for 45 percent of the global ammonia nitrate supply, according to figures from the Institute for Agriculture and Trade Policy cited by the FT. But it also accounts for 18 percent of the supply of potash—potassium-containing salts that are one of the main gradients of fertilizers—and 14 percent of phosphate exports.

Belarus is a major exporter of fertilizers, too, especially potash. But Belarus has been under EU sanctions since 2021 on human rights allegations, and unlike Russia, it has seen its fertilizer industry targeted by these sanctions. This has made for an unfortunate coincidence for Europe and its food security.

“The value chains were incredibly integrated,” the chief executive of Norway’s Yara International, a fertilizer major, told the FT this week. “When you look at the map — where Europe is, where Russia is, where the locations for natural resources are — these chains have been created over decades. Even during the coldest parts of the cold war, these products kept flowing so business was running. And that all changed radically in the course of a few days.”

Like with gas, although prone to acting before thinking, the EU has started looking for alternative fertilizer supplies. Morocco is one option, Euractiv reported earlier this month, as the country already supplies some 40 percent of Europe’s phosphate. This figure could even increase substantially.

Central Asia is another option, and more specifically, Uzbekistan. Uzbekistan exports fertilizers mostly to Asia and some Middle Eastern countries at the moment, but this may well change after an EU-Central Asia ministerial get-together, which is taking place right now in Uzbekistan.

So, on the one hand, local fertilizer production has been decimated by sky-high energy costs. On the other hand, sanctions have elicited a response from Russia that was probably not expected, although it should have been: exports have been slashed, leaving import-dependent Europe vulnerable to food shocks, and exposing yet another dangerous dependency.

There does not seem to be an immediate solution to the problem, and there may not be for a while. Even if Europe finds sufficient replacements for all Russian and Belarusian fertilizer imports, its bill will swell in a way similar to its gas bill when it switched from Russian pipeline gas to LNG. And this will feed inflation 

The Institute for Agriculture and Trade Policy, a sustainable farming advocacy, warned in a recent report that the world is “addicted” to chemical fertilizers. Advocacy aside, however, the report said that fertilizers are getting quite expensive.

Related: Biden Administration Calls For Immunity For Saudi Crown Price In Khashoggi Case

“G20 nations paid almost twice as much for key fertiliser imports in 2021 compared to 2020 and are on course to spend three times as much in 2022 — an additional cost of at least US$ 21.8 billion. For example, the UK paid an extra US$ 144 million for fertiliser imports in 2021 and 2022, and Brazil paid an extra US$ 3.5 billion,” it said.

Of course, a big part of this inflation is due to energy cost inflation since fertilizer production is an energy-intensive process. The fact remains that the global food chain, especially its European links, is not in a good place right now.

Russia continues supplying fertilizers to African countries, for example, but African countries haven’t imposed sanctions on Moscow. And Europe can’t really do a U-turn and remove sanctions because that will be the end of any reputation the EU has left.

Someone who subscribes to the IATP’s argument that the world is dangerously addicted to chemicals might see an opportunity in this fertilizer crisis. The Dutch government may actually embrace it as it pushes for a 70-percent reduction of nitrogen emissions from farming—a push that ignited mass farmer protests in the country.

Yet the recent events in Sri Lanka suggest that shaking off the fertilizer dependence might be unwise, especially if done suddenly. In this sense, the fertilizer addiction is as strong as the fossil fuel addiction some say humankind is suffering from. The silver lining is that a crisis prompted by overwhelming dependence on external suppliers could result in becoming less dependent on these suppliers, one way or another.

By Irina Slav for Oilprice.com 

More Top Reads From Oilprice.com:

Share this post


Link to post
Share on other sites

QUOTE from Klaus Schwab:  "...we should be very careful in imposing systems. But the Chinese model is certainly a very attractive model for quite a number of countries..."

2022-11-25_06-44-14.jpg?itok=dxqVJmAU

https://www.zerohedge.com/geopolitical/mask-wefs-klaus-schwab-declares-china-role-model

The Mask Is Off: WEF's Klaus Schwab Declares China A "Role Model"

Tyler Durden's Photo
by Tyler Durden
Friday, Nov 25, 2022 - 11:00 AM
  • Like 1

Share this post


Link to post
Share on other sites

https://oilprice.com/Latest-Energy-News/World-News/Over-2-Million-British-Households-Could-Unplug-From-The-Energy-Grid-This-Winter.html

Over 2 Million British Households Could Unplug From The Energy Grid This Winter

By Irina Slav - Dec 02, 2022, 2:00 AM CST

More than two million British households unable to afford electricity bills may decide to disconnect from the grid without informing their suppliers, the chief executive of a power utility said, as quoted by Bloomberg, today.

This would lead to illnesses and deaths, Bill Bullen, the CEO of Utilita Energy, said, and urged fellow power utilities to avoid this by changing old electricity meters with smart meters. Smart meters are connected to the supplier and can detect when a client is not using any electricity.

“Unless the customer has refused a smart meter, there’s no excuse for legacy meters to exist today,” Bullen said after a survey that his company conducted among 750 households.

“Having no choice but to sit at home without heating or light is unacceptable, and our government and the regulator must intervene immediately to stop self-disconnections.”

The issue certainly looks urgent as colder winter weather settles in across Europe. What’s more, the forecast is quite alarming as well: the UK’s Met Office said this week that the latter half of December will see a higher chance of frost and fog, along with below-normal temperatures and spells of wintry precipitation.

“We’re helping people already making desperate choices to keep bills down, like turning the heating off despite having a health condition,” said a representative of UK consumer group Citizens Advice.

In the meantime, Britons are facing considerably higher electricity bills after the latest adjustment of the price ceiling for households and government subsidies amounting to some $20 billion are clearly not enough to cushion the blow.

According to National Energy Action, as many as 8.4 million Britons will slip into poverty next year, after the new price cap kicks in, in April 2023. It was announced a week ago and represents an almost twofold increase in current electricity prices.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Share this post


Link to post
Share on other sites

https://www.zerohedge.com/news/2022-12-02/what-you-should-know-about-energy-poverty-europe

What You Should Know About Energy Poverty In Europe

Capitalist Exploits's Photo
by Capitalist Exploits
Friday, Dec 02, 2022 - 8:03

Statistica put out this handy chart giving us a visual of the rollout of poverty in Europe. Don’t expect the MSM to even report on this stuff.

energy poverty in europe

Without Russian gas, Europe has a shortage of energy, which has led to rising heating bills where the bulk of the costs are borne by households.

In the UK alone, one in three households are expected to be pushed into energy poverty this winter.

However, even before the energy crisis began, European households had problems with heating. In the EU in 2021, almost 7% of the population could not properly heat their homes.

The country most affected by fuel poverty was Bulgaria, where almost one in four residents (23.7%) were affected last year, followed by Lithuania (22.5%), and Cyprus (19.4%).

The lowest rates were recorded in Switzerland (0.2%) and Norway (0.8%). By contrast, countries in southern Europe saw a higher share of people unable to properly heat their homes in 2021.

The European average was 6.9%. When data for 2022 comes out, these figures can be expected to be worse.

European energy bills

European energy bills hit record despite government support. European households are paying more than ever for electricity and natural gas, even as EU governments have pledged more than €550 billion to “protect citizens and businesses from the energy crisis.” Bloomberg reported.

The average retail price of gas in the European Union and the UK was nearly €0.18 per kilowatt-hour in October, doubling from the same month last year, according to energy consultancy VaasaETT. Household electricity costs have soared 67% to €0.36 per kilowatt-hour.

On a monthly basis, the average unit rate for electricity in October increased by 3.4% and for gas by 2.5%. The biggest monthly gains were in Dublin, where power rates climbed 44%, while the average gas price in Rome soared by 97%.

The unseasonably warm weather in October brought relief to both consumers and governments as fewer people turned on the heating, the publication said. Yet, prices will definitely rise as Europe approaches winter.

Meanwhile over the pond…

Turkiye and Algeria to start joint oil and gas exploration company

Turkiye and Algeria will establish a joint oil and natural gas exploration company to operate in countries around the region, especially in Algeria, Turkish Minister of Energy and Natural Resources, Fatih Donmez, said Thursday, Anadolu News Agency reports.

The article goes on to say that…

The trade volume between Turkiye and Algeria, which was around $4 billion last year, will expand to $5 billion by the end of the year.

Based on a presidential decree issued in May during Algerian President Abdelmadjid Tebboune’s visit to Turkiye, they target a further expansion to $10 billion as soon as possible, Donmez said.

It’s almost like these guys are investing in fossil fuels.

Weird, heh?

Chris MacIntosh
Capitalist Exploits | Glenorchy Capital Macro fund | Subscribe to Insider | Rebel Capitalist Pro

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.