Chance (10 Oct 2021)
"Coming Global Energy Crisis?"


 
Hello John and Doves,
 
Seems the world is facing coming energy shortages and global fuel shortages.  We thought supply chain problems, import problems were winding down and the world was beginning to recover from Covid.  Not hardly.  This energy crisis is hitting the world hard.  This is Part 2 and may be far worse than Part 1.  And the weather this winter will have a HUGE effect on how bad and how wide spread this energy crisis will become.
 
"Countries around the world are feeling the brunt of the global energy crisis.  Some Chinese provinces are rationing electricity, Europeans are paying exorbitant prices for liquefied gas and Lebanon has run out of centrally-generated electricity.  Furthermore, India is close to running out of coal and in the United States, the price of a gallon of regular gasoline was $3.25 on Friday, up from April's $1.27."
 
"....the sudden energy crisis is putting a strain on supply chains and stirring geopolitical tensions."  This affects food prices and pushes up inflation.  And this may last a lot longer than many had hoped.
 
"Governments are scrambling to get subsidies in place to avoid a tremendous political backlash...There's a pervasive anxiety about what may or may not happen this winter, because of something we have no control over, which is the weather."
 
"India has warned coal reserves are at record lows with coal-fired plants set to go dark in just three days."  The Indian government data shows 135 coal-fired power plans have less than three days of fuel stocks.  Several states in India have already gone dark.  New Delhi may be next.  And these shortages could last through winter!  (India could run out of coal soon. So why is a country with such big reserves facing shortages?)
 
"Some Chinese provinces are rationing electricity due to the crisis."  China is facing its worst electricity crisis in ten years...many cities have been hit with blackouts and factories have closed or are running only a couple of hours per week.  This has affected mobile networks also.  The rising coasts of coal has hurt power stations.  Shop owners are using candles in the blacked out areas.  Sixteen provinces are avoiding full-blackouts by rationing electricity.  Some Chinese coal mines have been ordered to increase production.  And China is the world's biggest purchaser of natural gas - but stockpiles haven't kept up with demand.
 
If Chinese factories cut back - this could effect global prices of steel and aluminum.
 
"In Lebanon...there is no centrally-generated electricity after the country's two biggest power stations shut down due to a fuel shortage, plunging six million people into darkness."
 
The EU is seeing an increase in energy use as it tries to recover from Covid.  And has asked help from Putin to increase gas supplies to the EU...unfortunately the EU is stuck with Russia as its second largest supplier of gas.  Norway is the first.  Russia could put a strangle hold on Europe. "Tensions are also rising within the EU with leaders at odds over how to respond to the crisis."  "Europeans are paying exorbitant prices for liquefied gas..." 
 
("Gas prices in the UK surged by 40% on the day to a new all-time high as Europe's energy crisis deepens."  UK gas prices surge by 40% to record highs as the energy crisis worsens – Billionaire Club Co LLC)
 
All of this is allowing those who want 'green' energy to push for a break with fossil fuels.
 
Shortages have multiple reasons -  Mismanagement.  The push to recover from Covid - increasing energy demands.  High costs of gas/oil/coal due to Covid shutdowns.  Scarcity of raw materials, like coal.  Imported supplies are drying up.  With huge price increases.  Supply chains have been broken.  Freight prices have skyrocketed.
 
 
This global energy crisis is slamming countries around the world!
 
The U.S. will be directly affected by shutdowns in China - the U.S. gets 97% of its antibiotics from China, for starters.  Lots of our drugs come from China.  And 42% of all of US imports come from China - textiles, plastics, metals, rubbers...along with machinery and electrical like kitchen mixers, laser printers.  Companies like Whirlpool and Conair rely heavily on Chinese manufacturing. 
What Does the US Import from China? Import Data & 2021 Statistics
 
And energy problems seen in Europe will spread across the world.  As natural gas prices are pushed up further by demand in Europe (especially if this winter is a bitterly cold one), this will raise prices in other countries.."Economies that can't afford the fuel - such as Pakistan or Bangladesh - could simply grind to a halt."  "If the winter is actually cold, my concern is we will not have enough gas for use for heating in parts of Europe,"....
Europe’s Energy Crisis Is About to Go Global as Gas Prices Soar - Bloomberg
 
These 'local' energy crisis spread affecting other parts of the world...like a domino effect.
 
The extent and depth of this global energy crisis depends a lot of how hard this winter will hit the Northern Hemisphere.   Looks like a colder winter is predicted.
Extended Winter Forecast for 2021-2022 - Farmers' Almanac
 
Under President Trump, the United States was energy independent.  Then Biden and various governors put out EOs and various bills that slammed drilling, exploration, production, adding higher taxes, more regulations, etc....leaving the U.S. with rising prices for natural gas and dependence on OPEC crude oil...again.
Big Oil blasts Biden for turning to OPEC for more crude - CNN
 
U.S. exports of gas are preventing the U.S. from replenishing it's emergency storage levels.  This will hurt U.S. consumers who are already feeling the price hikes for natural gas.
 
The world could soon be entering a crisis of biblical proportions.  "This winter, the world is likely to learn how much the global economy depends on natural gas." 
Europe’s Energy Crisis Is About to Go Global as Gas Prices Soar - Bloomberg
 
This winter may well bring a "dark winter" to the world.
 
Pray for the peace of Jerusalem!
 
Maranatha!
 
Chance