Is global energy crisis an opportunity for Australia?
Team Veye | 11 Oct 2021
The world is facing an energy crisis caused by weather and a resurgence in demand, particularly after the pandemic. The rebound in economic activity from coronavirus restrictions has exposed the vulnerability as the supply of natural gas, coal and other energy sources was not sufficient enough.
Governments around the world are trying to limit the impact, ahead of the winter, when more energy is needed to light and heat homes.
Many factories have shut down in China due to severe power disruptions. Britain is witnessing many of its fuel pumps running dry. India’s power plants were also running on critically low coal stocks with over half of its coal-fired power plants having less than three days worth of fuel stocks, data from the federal grid operator showed.
Natural gas prices have already risen multifold in Europe this year. There have been forced restrictions on energy use in China and other countries amid rising oil, natural gas and coal prices.
Further aggravating the situation is the mounting pressure on governments to accelerate the transition to cleaner energy as world leaders prepare for a critical climate summit in November.
Global fuel shortages are dealing a further blow to the world economy which was just recovering after the coronavirus pandemic. It has highlighted the difficulty in cutting the global economy's dependency on fossil fuels as world leaders seek to revive efforts to tackle climate change.
The Department of Industry has predicted an extraordinary rally in prices for Australian fossil fuels. Since Australia was the biggest supplier of China’s imported LNG last year, its exporters can be among the biggest beneficiaries of this crisis.
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