What the global gas crisis means for the net-zero transition [Gas in Transition]

What the global gas crisis means for the net-zero transition [Gas in Transition]

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Natural Gas News
What the global gas crisis means for the net-zero transition [Gas in Transition]

Summary

We now have the opportunity to reform energy markets and take security of supply seriously. Let's hope that the required reforms are carried out, rather than require another energy crisis. [Gas in Transition, Volume 3, Issue 5] by: Charles Ellinas

The following feature is based on a thought-provoking presentation by professor Dieter Helm at the FLAME Gas & LNG conference held in Amsterdam on May 2-4. He said that even though the energy crisis is not over yet, the big shocks have been dealt with. Helm said crises tend to follow a cycle. “They start with denial, then panic when the end of the world seems nigh, then relief that all is not as bad as it seemed, followed by the long legacy as the full costs and impacts are gradually revealed.” Relief is often accompanied by complacency – declaring the crisis over too soon. This crisis, caused by a mismatch between energy supply and demand, is still haunting Europe’s industries and economies. Even though gas prices have declined to very low levels, they are still over two-times higher than pre-COVID levels, as are electricity prices. With lower Russian gas supplies, China’s economy back to growth mode in 2023 – leading to a rebound in gas demand – and limited increase in global LNG supplies, next winter could still be a challenge, with energy prices becoming problematic again. In Europe the crisis will be over only when it ensures a consistent...