It’s going to be a long time before the world or any appreciable part of it is going to make the green energy transition. Right now Europe is demonstrating the difficulty of doing so. From Israel Shamir at unz.com:
At the same time, the first blow of winter revealed the inability of green energy to heat our homes and energise industry. Nature proved its abilities: all of a sudden, Europe’s winds refused to move the turbines. An unusual calm settled in the North, as if the winds were confined by Aeolus in his bag. Energy prices skyrocketed. The excellent future planned for mankind, all digital, internet-based and free of fossil remains, failed to materialise. Instead of continuing our march towards the dreadful New Normal, we shifted back to our troublesome but familiar normality when things went awry. The cowboy hat of Big Tech was too large for its head. Mercifully, this misfortune occurred well before the whole of mankind had been railroaded into smart dwellings heated by the mischievous wind. Otherwise, last weekend could have been the end of Homo Sapiens: we would have frozen outside, unable even to pass through the smart doors.
An energy crisis combined with an Internet failure is very dangerous. Why don’t we encounter extra-terrestrials? Here’s a possible answer: every sapient civilisation destroys itself before it achieves the capability to venture to the stars. Intelligent creatures tend to overestimate their thinking abilities; instead of sticking to known technologies and implementing small improvements, they want to make a giant leap forward. The results are gloomy, as we learn now.
Like virtually all emergency shortages, the current European Energy Crisis has been created by European elites per some sort of arcane political calculations. From Tom Luongo at tomluongo.me:
The European Gas Crisis keeps hitting new high after new high as gas prices around the world go ballistic. While this isn’t just a European problem, if you read the MSM, that’s all they seem to care about.
You know, it snows in Japan as well folks, and China.
Prices keep skyrocketing in Europe because there is no shortage of idiocy at the top of the European power structure. The confluence of the pressurizing of Nordstream 2 with the release of the “Pandora Papers” and the beginnings of German coalition talks just after the beginning of Q4 should have everyone’s Spidey-Sense shutting down like your adrenals do after a long period of self-inflicted stress.
And honestly, whose adrenals aren’t on the verge of collapse after eighteen months of ‘flatten the curve,’ ‘follow the science,’ and ‘just roll over to the Communism, already, you disgusting plebe!’ that we’ve been going through.
I guess that’s yet another thing we have to try and factor into our analysis of what collapse is the most imminent?
Because when you put this gas crisis in Europe into its proper context it should be clear where the battle lines are being drawn as the extreme pressure cooker of today’s geopolitical landscape forces everyone off the sidelines and into the fray.
On the one hand we have natural gas prices in Europe approaching coffin corner. On the other we have Russia browning out gas deliveries to Europe. China is experiencing major energy shortages and the entirety of the coal delivery network around the world is buckling.
These are facts. There are more I could list but let’s stay focused here.
Europe’s governments have created an energy crisis for Europe. A severe winter could be disastrous. From Daniel Lacalle at app.hedgeye.com:
This week the wholesale price of electricity has exceeded the psychological barrier of 200 euros per megawatt hour in most countries of the European Union.
Although the daily price currently only affects 15% of the energy sold, since the rest is locked for almost twelve months since last winter at much lower prices, it is a sign of future risk. Thousands of contracts are going to have to be revised with huge price increases in the next three months when the locked contracts expire.
The price of liquefied natural gas (LNG) has soared to $34/mmbtu delivered in December and January. In comparable energy terms it would be about $197 per barrel of oil equivalent, according to Morgan Stanley. Meanwhile, the price of natural gas (NBP) has risen more than 200% in 2021.
The price of CO2 emission rights has increased more than 1,000% since 2017, and more than 200% in 2021. This concept, which is a hidden tax for which the governments of the European Union are going to collect more than 21 billion euros in 2021, adds to the inflationary spike.
These extraordinary tax revenues should be used to mitigate the price increases in consumer bills and avoid an energy crisis in Europe that will sink the recovery.
Two key factors explain the rise in energy prices and in both there is a responsibility of governments: The forced closure of the economy is a key factor to understand the damage generated in the supply chains, and the prohibition of investment in gas resources and abandoning nuclear in Germany has led to a more volatile and expensive energy mix in peak demand periods.
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