ENERGY is becoming a source of concern. China is the most obvious example, with several Chinese areas suffering from periodic blackouts, but they are not the only ones. India, too, is suffering from coal shortage and supply bottlenecks.
And it’s not just developing nations. The European Union (EU) is also suffering from the cost of heating, and fuel prices are reflecting this. Last week, natural gas has jumped to $5.6 while oil was around $80. I haven’t checked on coal, but it jumped to new highs in September, only to stabilize recently.
In any case, energy prices are all the proof one needs to see where the situation is headed, at least in the immediate scenario. For the next few weeks, months even, we can expect energy to be on the news. Some expect this to last for a long time, but I’m willing to wait and see how far it actually goes.
The reasons for the energy crunch have to do with logistics, production capacity and several types of policy, often several competing ones. Attempts to cut down on anthropogenic climate change are one common reason, with several governments attempting to shift energy production to natural gas or renewables.
There are also the trade wars, with China’s own problems exacerbated by its spat with the Aussies.
Too, there are supply and logistical reasons which, from what I know, is what is driving India’s problems. And of course, there is the threat of unstable production.
For those who are bearish on the energy sector, these reasons are enough to cause an energy crunch in the foreseeable future, while bullish types will claim that renewables can save us from some of the darker prognostication.
I will wait and see, but it would be wise to be prepared in case the worse should happen. If the rest of the world is running short on power, the Philippines may not be far behind./PN
