Manya Rathore
Research expert covering India
Global energy crisis - statistics & facts
The world is currently embroiled in a global energy crisis that has greatly affected commodity prices, with repercussions for households, manufacturers, and the wider economy alike. As reduced global natural gas supply could not keep up with the growth in demand arising from the first stages of economic recovery from the coronavirus pandemic, gas prices skyrocketed. Record high prices for natural gas saw demand for coal as an alternative - and therefore coal prices - also rise. The ripple effects of the energy supply shortage have since been felt in the prices of electricity, transportation fuels, and even fertilizers.
A perfect storm for the European energy sector
Between a long and cold winter that depleted gas stocks, extreme temperatures in the summer months, and the rebound of commercial and industrial activities, 2021 saw primary energy demand in Europe return to pre-pandemic levels. However, the growth in demand was met by low wind speeds which impacted wind power generation, coal-fired and nuclear electricity capacities that have been declining for over a decade, and a reduced natural gas supply from its main source, Russia. In turn, monthly wholesale electricity prices surged across the continent. Although prices had seen small signs of recovery in the first two months of 2022, since Russia’s invasion of Ukraine (and the trade and economic sanctions that followed) prices have been on an upward trend, breaking records month after month, and reminding the European Union of its reliance on Russia for meeting energy demand.
