Tag Archives: European energy shortages

Europe May See Forced De-Industrialization As Result Of Energy Crisis, by Irina Slav

Posted on November 6, 2022 | Leave a comment

The word “forced” is not completely accurate here, because Europe’s leaders freely chose its fate. From Irina Slav at oilprice.com:

  • European industries including ferroalloys, fertilizer plants and specialty chemicals are shutting down as a result of the ongoing energy crisis.
  • Certain industries may not come back, even if the energy crisis eases.
  • An increasingly tight regulatory environment is another reason for de-industrialization in Europe.

The European Union has been quietly celebrating a consistent decline in gas and electricity consumption this year amid record-breaking prices, a cutoff of much of the Russian gas supply, and a liquidity crisis in the energy market.

Yet the cause for celebration is dubious: businesses are not just curbing their energy use and continuing on a business-as-usual basis. They are shutting down factories, downsizing, or relocating. Europe may well be on the way to deindustrialization.

That the European Union is heading for a recession is now quite clear to anyone watching the indicators. The latest there—eurozone manufacturing activity—fell to the lowest since May 2020.

The October reading for S&P Global’s PMI also signaled a looming recession, falling on the month and being the fourth monthly reading below 50—an indication of an economic contraction.

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Posted in Business, Energy, Foreign Policy, Geopolitics, Governments

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This Winter, Europe Plunges Into “The New Dark Ages”, by Michael Snyder

Posted on September 11, 2022 | Leave a comment

It will be dark and cold, too, as Europe won’t have enough energy to go around. From Michael Snyder at theeconomiccollapseblog.com:

Could you imagine being sent to prison for three years if you dared to set your thermostat above 66 degrees Fahrenheit?  As you will see below, this is a proposed regulation that is actually being considered in a major European country right now.  If you have not been paying much attention to what is happening in Europe, you need to wake up.  Natural gas in Europe is seven times more expensive than it was early last year, and that is because of the war in Ukraine.  Over the past few decades, the Europeans foolishly allowed themselves to become extremely dependent on gas from Russia.   In fact, more than 55 percent of the natural gas that Germany uses normally comes from Russia.  But now the war has changed everything, and Europe is facing an extremely harsh winter of severe shortages, mandatory rationing and absolutely insane heating bills.

Things are going to get very cold and very dark all over Europe in the months ahead, and those Europeans that choose to rebel against the new restrictions that are being implemented could literally find themselves in prison…

Switzerland is considering jailing anyone who heats their rooms above 19C for up to three years if the country is forced to ration gas due to the Ukraine war.

The country could also give fines to those who violate the proposed new regulations.

Speaking to Blick, Markus Sporndli, who is a spokesman for the Federal Department of Finance, explained that the rate for fines on a daily basis could start at 30 Swiss Francs (£26).

19 degrees Celsius is just 66 degrees Fahrenheit.

If you live in Europe, prepare to dress very warmly this winter.

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Posted in Collapse, Energy, Geopolitics, Governments, Politics, War

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European Firms Warn “Unbearably High Energy Costs” May Spark Wave Of Production Shutdowns, by Tyler Durden

Posted on December 23, 2021 | 2 comments

A preview of the Green New Deal from Tyler Durden at zerohedge.com:

Years of mindless green energy policies across the European continent are about to unleash an economic crisis. Energy-intensive companies are paying “unbearably high energy prices” that may force them to shutter operations.

Eleven European associations (from steel to fertilizers to cement to paper mills) published a press release Wednesday that warned the energy crisis that plagues the continent has worsened over the few months and accelerated in the last several days as European natural gas hit a record high on Tuesday.

“The main reasons for this situation are the financial market speculation from financial players including hedge funds and commodity trading houses, the imbalances in the gas market, seasonally decreased renewable energy production, reduced nuclear energy production, coal mine closures, and increased carbon costs passed on in el

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Posted in Economics, Energy, Environment, Governments, History, Politics, Propaganda, Science, Technology

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EU Official Warns Of ‘Rolling Blackouts’ As Energy Crisis Worsens, by Tyler Durden

Posted on December 1, 2021 | 1 comment

It could be a disastrously cold winter in Europe. Too bad they’re substituting unreliable renewables for reliable fossil fuels and nuclear power. From Tyler Durden at zerohedge.com:

Europe’s energy crisis is about to get a whole lot worse as the Northern Hemisphere winter is just weeks away. New risks are emerging across the continent that households and companies might have to scale back on power use or even plan for rolling blackouts.

There is no immediate fix to the energy crisis that comes from the supply side, with Russia’s Gazprom, the largest supplier of natural gas to Europe, only pumping what it has. At the same time, EU stockpiles remain well below trend.

On Tuesday, Prime Minister Mario Draghi said Italy’s government is ready to combat soaring energy prices for households, according to Bloomberg.

“We set aside 1.2 billion euros ($1.4 billion) in June and over 3 billion euros in September,” Draghi said. “We are now taking steps in the budget and are prepared to continue doing so, with particular attention to the most vulnerable.”

“Given the current energy supply system, a blackout cannot be ruled out” across Europe, Minister Giancarlo Giorgetti said, adding that “it’s important to neutralize the impact of increased energy bills on households and companies in the fairest way possible.”

Even before the winter season arrives, cold weather is driving energy prices across Europe to record highs. The massive rally in European gas prices is not diminishing anytime soon. Gas prices at the Dutch TTF hub, the benchmark gas price for Europe, jumped to €100 per MWh, adding more pressure on households who are already dealing with rapid food and shelter inflation.

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