As all know that the European nation is one of the biggest consumers of gas in the world because they required gas for maintaining regular life. Europe is not able to produce enough gas in the domestic market so it imports gas from Russia. Russia is the largest nation that exports gas to not only Europe nations but also the world. In recent years a single nation exports natural gas of around 240 billion cubic meters across the world. Now the situation is considering the increase in demand for air conditioning during the summer, and controlling heat in winter as well but the supply of energy is decreased due to the EU sanctions on Russia. Russia is the greatest exporter of gas to Europe and regular reports measure that European nations are suffering from the huge rises in prices of energy gas. Now let us discuss in detail what the matter of energy crisis in the European nations is.
The energy crisis in the European nation
Recently in 2022, the European Council held a special meeting, in this meeting all the member states agreed to adopt the six packages of sanctions against Russia. It includes the complete ban on the importation of seaborne crude oil and petroleum products from Russia by the end of 2022.
After forbidding the oil and coil products, there are several other leaders have urged a further ban on the trade of natural gas, arguing that existing sanctions are not enough to punish Russia for its reckless invasion of Ukraine. From this, the most of leaders agreed for embargoing natural gas from Russia but they do not analyze the particle consecutions due to the European high depending on it.
As mentioned above Europe is one of the large consumers of natural gas from Russia. During the invasion, Russia exports natural gas to Europe in balk in chip amount. In late June, the supply of natural gas by the Nord stream which is one of the main pipelines of gas supply from Russia to Europe has been cut by 60 percent. In this situation Russia defended the move by city technical issues, several experts believe that the real intention behind this might be to push the price of fuel. It was the warring given by Russia to Europe that sanctions are a double-edged sword. After that European prices index measures that the price of fuel and gas has increased continuously. European is facing high inflation in natural gas prices because of sanctions.
The major four facts of the energy crisis in Europe
European is facing an energy crisis now and it could be long. Rising the prices of energy costs likely increase not only fuel bill but also increase the other prices pf much other everyday purchase, including the food items.
Other sanctions on Russia, there are several other reasons behind the European energy crisis and show how the global market is interconnecting to the global energy market. In this guide, four key points will help to understand some of the issues of the energy crisis.
Recovering global demand strongly
The demand for gas fell globally by 1.9 percent in 2020 because that was the worst period of pandemic disruptions in the world. However, now the energy demand increased because of the mild winter in the northern hemisphere.
Recently the report of the global gas security review, the international energy agency share its view that gas demand is likely to rebound by 3.6 across the world in 2021. If all things are not changed then it is predication that in 2024 gas consummation would be increased and growth in demand is approx 7 percent higher than pre pandemic level. This is one of the main reasons for raising the fuel price all around the world.
Europe is depending on gas imports
Relying on gas imports is one of the biggest issues facing the energy crisis in the European nation. Production of gas is declined in Europe. The several North Sea of gas is becoming dry. There is almost no gas production in the domestic nation of Europe. These are the reason for increasing the dependency on gas imports primarily relying on Russia and Norway. If Europe wants to alleviate this crisis then it will need to shift gas to coal uses.
Continues increase in prices
In a recent survey, reports say that there has been a 600 percent increase in European gas prices so far in 2021. In early October there was a 37 percent hike in wholesale prices of gas in 24 hours in the UK. The prices of wholesales also collapse in the UK. There is a lot of inflation in gas prices faced by India also. So nations need to work on renewable gas for further reduction in reliance on fossil fuels from other nations.
Winter is coming
In the northern hemisphere, it started in 2021. It punctuated a series of very cold extreme weather events. When the swathes of the US were affected by the polar vortex then it brought snow, ice, and freezing temperatures to south areas. Another very cold northern winter would put additional pressure on the gas system that is already struggling in not only in European nations but also all around the world. Completing the increased demand for gas during cold weather would be a task with low gas stocks available.