Currently, the whole world is undergoing a severe energy crisis. Though there are several root causes, the main one is the aftermath of the COVID-19 pandemic. According to the Canadian Energy Centre, between 2020 and 2021, “the pandemic slow[ed] investment in new oil and gas development, spurred by reduced demand and crashing global oil prices.” 

Even after the rebound of the economy afterward and subsequent increase in demand for oil and gas, Europe’s largest producers of wind power, Great Britain, Germany and Denmark, experienced wind droughts. At around the same time, Latin America experienced droughts as well, decreasing necessary hydropower for the transportation of liquid natural gas to Europe which jeopardized energy supply even more. 

Inevitably, demand for other energy sources such as natural gasses spiked along with their prices. However, a lack of investment during the pandemic resulted in natural gas capacity being at an all-time low. While energy demand increased with the sudden jump back to normal life, many countries remained unprepared with their supply. 

According to the International Energy Agency (IEA) and European Union Institute for Security Studies (EUSS), “the EU increased its gas consumption by 25 percent, leading to surging energy prices due to the lack of supply. Europe also had below-average renewable energy generation, especially in wind power due to less-than-ideal wind conditions. This led to an even higher demand for energy imports.”

While a lack of energy supply remains a global issue, European countries are currently experiencing some of the most severe challenges.

Along with Europe’s wind power crisis, all of Europe is in the process of phasing out coal with none reversing from their commitment, making natural gas extremely valuable. As a result, issues such as increased prices and more demand over supply are further exacerbated. 

Additionally, with the conflict between Ukraine and Russia, more complications arise. The US, being allied with Ukraine, has enacted fervent efforts to keep other countries on their side against Russia, leading to several cuts in gas from Russia. With natural gas being paramount to European countries who rely heavily on Russian imports after the Netherlands, the top domestic producer of natural gas for Europe, started phasing out of natural gas, European nations grew anxious. 

Still, in preparations for the possibility of Russia cutting gas completely, “the US and Brussels have been pleading with EU members to save gas and store it for winter. Energy ministers agreed in principle to cut gas use by 15% from August to March” according to CNN. 

When asked if the complete cut of oil and gas was a result of foreign opposition, Peskov, the Press Secretary of the President of the Russian Federation replied, “It is precisely these sanctions that the Western states have introduced that have brought the situation to what we see now,” 

The biggest issue for European countries is the approaching winter. Compared to other countries, those in Europe have colder winters, increasing usage of heating systems fueled by natural gas. 

Moreover, the crisis is not evenly balanced throughout Europe. While some countries that are near Russia such as Poland, Finland, and Slovakia, depend almost completely on Russian natural gas, others such as the Netherlands, Georgia, and Romania, remain less affected. 

Currently, there is a lean towards liquid natural gas to hopefully recover a solution. 

By Irene Kim