Natural gas shortages jeopardize the government’s green goals

YOther Critical global markets have grown rapidly from food to scarcity. Last September, an average of 119 119 million ($ 139) was enough to heat enough homes to heat a home in Europe, and the continent’s gas storage facilities were full. It costs 738 euros today and shares are in short supply. Even the United States, which has abundant shale gas, has seen prices more than double – albeit lower – and could see further increases if the winter is cold.

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There are many reasons for this shortage. The cold European spring and the hot summer of Asia boosted energy demand. Industrial recovery has boosted global food demand for liquefied natural gas (LNG). Russia is importing less gas into Europe. The Hawks are suspected of trying to disrupt the market and ensure the construction of the new Nord Stream 2 pipeline. However, a processing plant in Siberia was disrupted, including a fire.

Gas has been plugging power generation gaps from other sources. Europe did not have much wind this summer, and drought was interfering with hydroelectric power. Increasing the cost of licenses required to extract carbon in A. H Coal made it expensive. So there is no alternative to electric gas and to burn gas to heat homes.

While other bottlenecks for container vessels and microchips have led to an increase in capital costs, investment in fossil fuels has been declining for some time. American gas can be very helpful as gas supplies are perfectly connected LNG. High prices, when hit, are primarily used for low supply. But curbing demand requires big price movements. If the coming months are cold, European power may be too expensive to persuade companies and families to use less.

Sorting this requires a thorough examination of the defect. Governments have not paid enough allowances for renewable energy. The world has very little nuclear power: low carbon energy is always on. They make things worse for gas interventions and subsidies. Expensive energy irritates voters and harms the poor. But, as Italy has done, subsidizing power or lowering prices, like in Britain, will exacerbate inflation and make politicians look greener. If governments are helping energy markets become more efficient, they should use the charity system to support family income.

The long-term challenge of moving to renewables is to reduce variability. In the long run, cheap battery storage can solve the problem of disconnection; Now a lot of gas storage also helps. In the meantime, improvements in the market can improve things.

In the UK, many consumers who supply low-cost but buy power at floating rates will soon fail. Finding companies that sell at fixed rates to encourage wholesale prices should encourage more natural gas reserves. Another idea is to connect the grid (the relationship between Britain and France has recently failed) and invest more in LNG Infrastructure, so that arbitration businesses can even make a difference in the global energy supply.

Waste energy sources must be expensive. But if there are no reliable alternatives, inflation will lower inflation, lower living standards, and make localism less popular. Today’s crisis will be the first of many to threaten the transition to a more stable climate if governments do not manage energy transfer more carefully.

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This article appeared in the issue of “Gas Mysteries” in the print edition.

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