Empty gas stocks, windless days, disrupted supply lines, CO2 certificates, soaring inflation, blackouts, bitter cold and other forebode a winter of discontent across Europe.
Recently Bloomberg reported on how Europe was on the path to a severe energy crisis this winter, with risks of blackouts.
Dutch TTF #gas priced in #crudeoil equivalent now trading at $148/barrels 😱. If not arrested soon it will be surging diesel prices next, thereby supporting the middle barrel, and oil prices in general. #OOTT #ONGT pic.twitter.com/QP9aERpho9
— Ole S Hansen (@Ole_S_Hansen) September 15, 2021
Germany’s N-TV also reports a dire picture, writing “Europe’s gas storage facilities are largely empty, and supplies are not flowing as they should.
Already surging energy prices are forcing the first companies to close factories in Europe, and German companies like BASF and copper producer Aurubis are complaining about extremely high prices for energy sources.
U.S. investment bank Goldman Sachs is warning of “almost empty gas storage facilities” and that “Europe faces an acute energy crisis.” Utilities across Europe have already announced massive price hikes.
Another problem, according to N-TV: Companies are struggling to get supplies of raw materials and semi-finished goods. “Inflation in Germany has already climbed to its highest level in almost 30 years.” Prices for raw plastic, for example have skyrocketed since late last year.
The price of gas in Amsterdam has already more than tripled since the beginning of the year. The reason, according to N-TV, are interrupted supplies from Russia, and production from Europe’s North Sea gas fields “has also been curtailed”! Also “CO2 tax and oil price drive up fuel prices,” reports N-TV.
Phaseout of coal, nuclear worsening the problem
Adding to the European energy supply woes: “Europe has recently experienced an unusual wind lull”, which has forced Germany to ramp up its coal (lignite) fired power generation, which, according to N-TV, “is in the process of being phased out.” The price of burning coal is also more expensive, thanks to the now higher price of CO2 emission certificates.