The global energy crisis has every chance to worsen in

Reading time: 3 minutes

Global energy supply problems that have triggered crippling crises in some parts of the world and led to rising energy and fuel prices to record levels could continue to worsen, according to the head of the International Energy Agency (IEA). , quoted by Bloomberg.

“The world has never seen such a severe energy crisis in terms of depth and complexity. It is possible that it has not yet reached its worst, and this is already affecting the whole world, “IEA Executive Director Fatih Birol told a global energy forum in Sydney on Tuesday.

The entire energy system was drawn into a dangerous whirlwind, especially following Russia’s invasion of Ukraine in late February. At the time, Russia was the largest exporter of oil and gas and a major player in other commodity markets, Birol said.

Rising prices raise the cost of filling gas tanks, heating homes and supplying industry around the globe, being an additional factor in inflationary pressure. In fact, the situation has already led to major protests, even resulting in human casualties, from Africa to Sri Lanka.

As with the oil crises of the 1970s, which led to huge technological advances in fuel efficiency, as well as a nuclear power boom, the world could be forced to adopt more rapid policies. government officials who are speeding up the transition to cleaner energy, says Birol.

But until then, security of oil and gas supply will continue to be a major challenge, especially for Europe, but also for other regions, he said.

“This winter in Europe will be very, very difficult. This is a major concern and could have serious implications for the global economy, “he added.

“The greatest peace plan of all!”

As the US and its allies seek alternatives to exports of energy raw materials from Russia, the consequences of the new geopolitical realities on the global energy sector have highlighted the need to reduce dependence on fossil fuels, the US Secretary of State said at the same forum. energy Jennifer Granholm.

“The transition to clean global energy could be the greatest peace plan of all. We want and need to take the next step, towards “energy cleansing,” she said.

In this regard, Granholm pointed out that the countries of the world must avoid shifting their dependence on one dominant energy supplier for hydrocarbons (Russia) to another (China) in efforts to transition to clean energy.

“China has a hard word in technology and global supply chains, and that could make us vulnerable if we don’t develop our own supply chains,” she warned.

China controls about 80% of global supply chains for solar energy production, and its share is expected to increase to 95% by 2025, according to International Energy Agency estimates.

China dominates much of the world’s production of lithium-ion batteries, is a major manufacturer of wind turbines and is looking to rapidly develop its capacity in “clean” hydrogen production technology.

Diversifying supply chains is an evolving process, says Martin Green, a professor at the University of New South Wales.

US restrictions on imports of products from the Xinjiang region of China, as well as the much-discussed European tax on the import of high-carbon energy goods (Carbon Border Adjustment Mechanism (CBAM)) are factors that could contribute to this. process, by creating a window of opportunity for other producers, the size of India, says the Australian professor.

“By building strong clean energy supply chains, we will be able to protect our economies from the shocks of the next crisis. There is no more time to waste! ”Said Australian Minister for Climate Change and Energy Chris Bowen in a speech at the Sydney forum.