These tweets are from @FortuneMagazine on Twitter.
An energy crisis the likes of which hasn’t been seen in decades is unfolding around the world.
1) Europe’s long-standing gambit on cheap Russian gas could backfire into one of the worst energy crises on the continent since the 1970s.
2) Before the war in Ukraine, EU nations relied on Russia for 40% of their natural gas—the second most common energy source in Europe behind petroleum oil.
Now, the limited supplies have more than doubled the price of natural gas and tripled electricity bills.
3) The situation is so dire that governments that previously renounced fossil fuels and nuclear power are desperately reopening coal plants and nuclear sites, and nationalizing utility companies to save them from going bankrupt.
4) But as bad as it is now, these might still be the good days for Europe.
With winter and higher gas demand on the way, even the slightest uptick in energy demand anywhere in the world could entirely shut down some manufacturing sectors.
5) Expanding natural gas infrastructure is expensive, demands years of investment, and the results likely won’t kick in until the summer of next year,
That’s why many countries focus mainly on saving energy to increase reserves for winter.
6) European governments have already implemented some energy measures:
💡turning of traffic lights at night
💡dimming lighting on historic buildings
During the winter, consumer use might also have to be restricted.
7) So far, most European factories have reduced their capacity.
But the worst-case scenario would be a shutdown of European manufacturing industries most reliant on natural gas—including glassmakers and steel companies.
8) Cutting back on industrial capacity could lead to lower economic activity, higher unemployment rate, and even recession.
9) If rising bills combine with a wave of unemployment and economic downturn, the crisis could spill out onto the streets (which has already begun in some countries like Germany and the Czech Republic).
10) “EU and members will work in solidarity, supporting each other .. or there is another scenario: everybody is for himself,” said
Fatih Birol, head of the watchdog International Energy Agency.