• Advertise
  • About us
  • Terms and Conditions
  • Contact us
Saturday, July 12, 2025
Australian Times News
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia
No Result
View All Result
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia
No Result
View All Result
Australian Times News
No Result
View All Result
Home News

Suddenly we are in the middle of a global energy crisis. What happened?

European and Asian gas prices are at an all-time high, the oil price is at a three-year high, and the price of coal is soaring on the back of energy shortages across China, India and Germany.

The Conversation by The Conversation
13-10-2021 06:11
in News
Photo by John Cameron on Unsplash

Photo by John Cameron on Unsplash

Lurion De Mello, Macquarie University

Far from emerging from the COVID shock awash with fuel, as might be expected after an economic slowdown, the world is entering a new energy crisis the like of which hasn’t been seen since the 1970s.

European and Asian gas prices are at an all-time high, the oil price is at a three-year high, and the price of coal is soaring on the back of energy shortages across China, India and Germany.

The surge in demand is being driven mostly by recovering economies and anticipated extreme weather across Europe and north-east Asia. China is stockpiling domestic coal and gas reserves, and Russia is reluctant to supply gas to Western Europe.

Closer to home, Australia’s gas prices are soaring, but might soon plummet.

Petrol pandemonium

In Britain, a shortage of the truck drivers who move fuel has led to panic-buying amid fears of a shortage. After Brexit, many European truck drivers went back to their home countries and never returned.

British fuel pumps are out of order. EPA

Compounding Britain’s problem was its so-called “windless summer” in which renewable power production was much lower than normal. This put a significant strain on electricity generation as around 24% of its power is produced by wind.

AlsoRead...

The Broker who says ‘Yes’ when Banks say NO

The Broker who says ‘Yes’ when Banks say NO

8 July 2025
Leading with Trust: Why Quality still wins in the AI Era

Leading with Trust: Why Quality still wins in the AI Era

5 June 2025

Britain has transitioned away from coal as an electricity source and with low emergency supplies will find it difficult to suddenly switch back to coal.

Prime Minister Boris Johnson remains committed to wind generation and says he wants the UK to become the “Saudi Arabia of wind power” with offshore wind farms generating enough electricity to power every UK home within a decade.

Oil on a roll

Oil prices have soared in response to the windless summer and British and German difficulties in getting access to Russian gas. Those increases will soon hit Australia which imports 80% of its petrol, diesel and jet fuel.

OPEC+ (OPEC and a Russia-led group of oil producers) have agreed to boost production, but only in measured steps.

If and when Britain and Germany resolve their gas supply issues with Russia, perhaps by mid-2022, gas and oil prices will slide.


This will put severe pressure on Australia’s 20 to 30 lucrative long-term supply contracts with Japan, South Korea and Taiwan which expire in a few years.

It is possible that other nations in the Indo-Pacific investing heavily in their gas infrastructure, such as Vietnam and India, will pick up the slack.

Coal comfort

The crunch in the gas market is forcing countries to revert to coal for electricity generation and for industry. Thermal coal prices in Asia keep hitting record highs.

In Asia, there isn’t enough coal to meet expected demand. A cold winter followed by a hot summer and stronger economic growth has led to greater Chinese demand. It is the main cause of an emerging electricity crisis in China.

China, which eased up on coal consumption a few months ago to meet emission targets, is back in the market as stockpiles run low. India faces a similar predicament as coal stockpiles are running low.


There is speculation China might do a U-turn on its unofficial ban on Australian coal and once again embrace Australian imports.

In Europe, the early closure of nuclear plants and record gas prices are set to boost coal use. The price for thermal coal is hitting record highs in Europe, and in Australia the price of Newcastle coal is up 250% and close to its 2008 record high.

Future in flux

The crisis suggests the transition to renewables will take longer than expected and be more complicated than expected.

It will cast a shadow over the COP26 UN climate change talks due to begin in Glasgow on October 31.


Correction: This piece has been amended to note that around 24% of Britain’s electricity is generated by wind, not 40% as earlier stated.

Lurion De Mello, Senior Lecturer in Finance, Macquarie University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Tags: SB001
DMCA.com Protection Status

SUBSCRIBE to our NEWSLETTER

[mc4wp_form id=”2384248″]

Don't Miss

The Dating Wealth Gap Is Getting Wider: What You Should Know

by Fazila Olla-Logday
11 July 2025
Source: Pixabay
Lifestyle

The divide between wealth and romance is growing. As income inequality widens, financial status is playing a bigger role in...

Read more

The Broker who says ‘Yes’ when Banks say NO

by Pauline Torongo
8 July 2025
The Broker who says ‘Yes’ when Banks say NO
Business & Finance

When faced with constant loan rejection or last-minute withdrawals of support, Trelos Finance stands out as a solution.

Read more

Common Mistakes When Buying a Telescope — And How to Avoid Them

by Fazila Olla-Logday
1 July 2025
Common Mistakes When Buying a Telescope
Technology

You’ve spent hours scrolling through telescope specs online, dazzled by features and grand promises. The excitement builds—until your newly arrived...

Read more

From Portugal to Bali: Where Aussies Should Go for Your Next Coastal Holiday

by Fazila Olla-Logday
20 June 2025
Source: Flickr
Travel

Aussies, here is a guide to where you should go for your next coastal holiday.

Read more

Leading with Trust: Why Quality still wins in the AI Era

by Pauline Torongo
5 June 2025
Leading with Trust: Why Quality still wins in the AI Era
Business & Finance

If you're leading a software team today, you've likely noticed the shift: faster feature rollouts, routine automation, and AI taking...

Read more

How to Save on Airport Parking: Budget Tips Every Traveller Should Know

by Fazila Olla-Logday
3 June 2025
How to Save on Airport Parking
Travel

Saving money on airport parking can be a challenge,but here are some budget friendly tips to help you navigate.

Read more

Why Australian Investors are Betting on the Aviation Maverick Louis Belanger-Martin

by Pauline Torongo
28 May 2025
Why Australian Investors are Betting on the Aviation Maverick Louis Belanger-Martin
Business & Finance

Bélanger-Martin’s ambitions stretch beyond redefining inflight comfort—they’re rooted in resurrecting the romance of supersonic travel with a modern twist.

Read more
Load More

Copyright © Blue Sky Publications Ltd. All Rights Reserved.
australiantimes.co.uk is a division of Blue Sky Publications Ltd. Reproduction without permission prohibited. DMCA.com Protection Status

  • About us
  • Write for Us
  • Advertise
  • Contact us
  • T&Cs, Privacy and GDPR
No Result
View All Result
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia

Copyright © Blue Sky Publications Ltd. All Rights Reserved.
australiantimes.co.uk is a division of Blue Sky Publications Ltd. Reproduction without permission prohibited. DMCA.com Protection Status