There is a before and after for energy, following the Russian invasion of Ukraine.
As the invasion of Ukraine is endangering the delivery of gas and oil from Russia, prices have hit new peaks.
Although there is a verbal escalation, with Putin threatening nuclear armageddon if the west helps Ukraine with military supplies, at the time of writing the flow of gas and oil through the pipelines connecting Russia with the west is uninterrupted. It keeps us warm, mobile and with electric energy functioning. But the threat of an abrupt cut in supplies at Putin’s whim is there, everpresent and it’s already driving the price of energy to peaks.
It’s not the first time that we are facing an energy crisis. The first one, unleashed by OPEC in 1973 during the Yom Kippur/October war, saw an abrupt loss of oil flowing to our economies and it caused a financial crisis, as it compelled us to walk and take public transport, something we had forgotten how to do. Further crises followed in 1979 (Iranian Revolution,) 1990 oil price shock (caused by the first Gulf War.) More crises followed, but local or not as severe.
Will the current situation turn into a full-blown energy crisis? Will it cause a downturn in our economies?
Most important of all: Have we learned any lessons since 1973 and, if not, why?!
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We discussed energy on 16th February 2022, the angle was: Nuclear and renewable energies.
Now the subject comes up again, with renewed urgency, the question being: Can Europe survive without Russian gas and oil?
Check out our recent discussion about Nuclear and renewable energies:
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Can Europe survive without Russian gas and oil? ELfR Discussion with Renzo Colombo