Winter: energy crisis and natural gas

Europe's energy crisis looms for the rest of the world this winter. The stark reality is that there simply isn't enough natural gas to fuel the post-pandemic recovery. 

In the following chart we can see the costs by region to generate gas for heating:

Europe : Natural gas

Rising energy costs are not just a British problem. Rising demand and dwindling gas supplies have driven energy prices to record levels across Europe; a crisis that portends trouble for the rest of the planet. It could not have come at a worse time for the European Union; as it seeks agreement on tougher climate rules, including restricting investment in and use of fossil fuels. The transition to a low-carbon economy will not be cheap.

In the UK, Boris Johnson may call in the army to help deliver gasoline under a contingency plan called Operation Escalin. The prime minister bowed to demands to issue visas to foreign truck drivers after panic buying left some gas stations empty.

Inventories at European storage facilities are at historically low levels for this time of year; while pipeline flows from Russia and Norway have been limited. Asia and Latin America will not be immune to the consequences.