Western newspapers revealed a real crisis that is beginning to loom in Europe, stressing that the winter will be harsh, and that the “red signals” have begun to appear in real terms.
The Economist newspaper, which specializes in politics and economics, published an article addressing the Europeans, saying: “If you have spent the past few days in this (hot) weather, the last thing that comes to your mind is cold weather, being on the shores of the Mediterranean or (toasting). Slowly on the streets of Berlin, London or Rome in the midst of a heat wave. But we must remember that the coming winter promises to be harsh and divisive due to the rapidly worsening energy crisis.”
The newspaper noted that several disasters in the past decade came close to tearing Europe apart, including the euro crisis in early 2010 and the migrant crisis in 2015. Noting that the energy crisis that Europe will witness in the winter of 2022 may join those disasters again, as “The continent’s unity and determination are about to be tested.”
The newspaper pointed out that although most Europeans can not yet “see or smell the stomach”, a euphemism for the dangers felt by citizens, but in the markets, “warning lights are already flashing red.”
Improper Energy Merchants are starting to get scared
The newspaper indicated that the prices of “gas delivery this winter will be at the limit of 182 euros / megawatt-hour, almost as high as they were in early March, and seven times their level in the long term.”
“Governments are preparing to bail out crippled utilities in France and Germany, and some investors are betting on industrial companies that will go bankrupt later this year as rationing continues. While most politicians in Europe fail to balance public opinion about the difficult choices that lie ahead, Even the gray-haired energy merchants (in poetry, euphemism) who are accustomed to wars and coups, are beginning to worry.
The newspaper pointed out that the acute energy crisis has been a danger since the start of Russia’s special military operation in Ukraine, “while sanctions and Russia threaten to separate Europe from its main supplier, gas is the choke point. Russia meets a quarter of energy demand on the continent, and Russia provides a third That demand and the numbers are higher in some countries, including Germany.”
“Unlike oil and coal, which can be exchanged and traded globally, gas must either be piped or transported as LNG, using facilities that take years to build or reconfigure.”
The newspaper noted that despite Europe’s attempt to accumulate gas reserves for the winter, “the picture is now getting worse again. The faults in the Norwegian gas field are partly to blame, as well as the hot weather that creates the demand for electricity to run the air conditioning.”