2021.11.22 (월)

National/World News

The Global Energy Crisis

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     Recently, the global energy crisis is getting serious. It occurred due to various reasons, and greenflation, a surge in raw material prices which occurs in the process of converting to an eco-friendly industrial structure, is one of the strongest reasons. Greenflation restrained the supply of non-ferrous metals, therefore, there have been tons of side effects.

 

 

     First, coal prices doubled from $50 per ton at the end of last year to $100 this September. Chinese government minimized investment and production of fossil fuels, which brought to the global energy crisis. Furthermore, the Chinese government refused to purchase Australian coal, and this decision caused the worst energy crisis. The coal prices of Australia, which was chosen as a substitute, also rose to $200 per ton. Second, crude oil prices rose 52.5%. The situation is worse than at any time as oil prices have surpassed a seven-year high of $80. WTI (West Texas Intermediate) has ascended about 120% since last November and has gone beyond the ascent rate of copper. Additionally, natural gas prices rose 400% compared to the beginning of this year. Natural gases have a big impact in Europe, especially in Britain, because they mostly use natural gases as an alternative to other fuels. Fortunately, the Russian government stably provided natural gases, however, it would take a long time for the recovery of the world economy and energy market.

 

     Many developed countries including Germany and U.S. are changing their policies about using green energy sources amid the affair. They cannot afford to produce eco-friendly energy these days, so they have no choice but to use “outdated” energies, such as Coal-fired power generation nuclear power generation.