Current global maps of energy prices show western nations, especially in Europe have begun bleeding their economies and societies by self-imposed misguided climate policies. Tyler Durden reports at zerohedge Mapped: Global Energy Prices By Country. Excerpts in italics with my bolds.
For some countries, energy prices hit historic levels in 2022.
Gasoline, electricity, and natural gas prices skyrocketed as Russia’s invasion of Ukraine ruptured global energy supply chains. Households and businesses are facing higher energy bills amid extreme price volatility. Uncertainty surrounding the war looms large, and winter heating costs are projected to soar.
1. Global Energy Prices: Gasoline
Which countries and regions pay the most for a gallon of gas?
At an average $11.10 per gallon, households in Hong Kong pay the highest for gasoline in the world—more than double the global average. Both high gas taxes and steep land costs are primary factors behind high gas prices.
Like Hong Kong, the Central African Republic has high gas costs, at $8.60 per gallon. As a net importer of gasoline, the country has faced increased price pressures since the war in Ukraine.
Households in Iceland, Norway, and Denmark face the highest gasoline costs in Europe. Overall, Europe has seen inflation hit 10% in September, driven by the energy crisis.
2. Global Energy Prices: Electricity
Extreme volatility is also being seen in electricity prices.
The majority of the highest household electricity prices are in Europe, where Denmark, Germany, and Belgium’s prices are about double that of France and Greece. For perspective, electricity prices in many countries in Europe are more than twice or three times the global average of $0.14 per kilowatt-hour.
Over the first quarter of 2022, household electricity prices in the European Union jumped 32% compared to the year before.
In the U.S., consumer electricity prices have increased nearly 16% annually compared to September last year, the highest increase in over four decades, fueling higher inflation.
However, households are more sheltered from the impact of Russian supply disruptions due to the U.S. being a net exporter of energy.
3. Global Energy Prices: Natural Gas
Eight of the 10 highest natural gas prices globally fall in Europe, with the Netherlands at the top. Overall, European natural gas prices have spiked sixfold in a year since the invasion of Ukraine.
The good news is that the fall season has been relatively warm, which has helped European natural gas demand drop 22% in October compared to last year. This helps reduce the risk of gas shortages transpiring later in the winter.
Outside of Europe, Brazil has the fourth highest natural gas prices globally, despite producing about half of supply domestically. High costs of cooking gas have been especially challenging for low-income families, which became a key political issue in the run-up to the presidential election in October.
Meanwhile, Singapore has the highest natural gas prices in Asia as the majority is imported via tankers or pipelines, leaving the country vulnerable to price shocks.
By December, all seaborne crude oil shipments from Russia to Europe will come to a halt, likely pushing up gasoline prices into the winter and 2023.
Concerningly, analysis from the EIA shows that European natural gas storage capacities could sink to 20% by February if Russia completely shuts off its supply and demand is not reduced.
As Europe seeks out alternatives to Russian energy, higher demand could increase global competition for fuel sources, driving up prices for energy in the coming months ahead.
Still, there is some room for optimism: the World Bank projects energy prices will decline 11% in 2023 after the 60% rise seen after the war in Ukraine in 2022.
Background Post G7 Ministers Pledge Energy Hari-Kari
G7 Climate, Energy and Environment Ministers’ Communiqué, Berlin, May 27th, 2022
Excerpts in italics with my bolds
Recognising that accelerating the international clean energy transition and phasing out continued global investment in the unabated fossil fuel sector is essential to keep a limit of 1.5 °C temperature rise within reach, we commit to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited circumstances clearly defined by each country that are consistent with a 1.5 °C warming limit and the goals of the Paris Agreement. (pg. 33)
We note with concern the scale of private finance currently still supporting non-Paris aligned activities especially in the fossil fuel sector. (pg. 22)
We are thus further strengthened in our resolve to accelerate the clean energy transition towards a net zero emissions future by 2050, while also keeping energy security and affordability at the core of our action, including through the rapid expansion of low-carbon and renewable energies and an increase in energy efficiency. (pg. 29)
In this regard, we acknowledge the IEA net zero scenario which suggests that G7 economies
invest at least US$1.3 trillion in renewable energy including tripling investments in clean
power and electricity networks between 2021 and 2030. (pg. 31)
We confirm our strong financial commitments for the market ramp-up of low-carbon and renewable hydrogen and its derivatives, thereby signalling an irreversible shift towards a world economy based on low carbon and renewable energy sources. (pg. 31)
In view of the Russian attack on Ukraine, financial support for companies and citizens affected by severely rising prices for fossil fuels is now on the political agenda for several countries. Nevertheless, we aim for our relief measures to be temporary and targeted and we reaffirm our commitment to the elimination of inefficient fossil fuel subsidies by 2025. (pg. 32)
We also highlight that we have ended new direct government support for unabated international thermal coal-fired power generation by the end of 2021, including through Official Development Assistance, export finance, investment, and financial and trade promotion support. (pg. 33)
We commit to increase national efforts to decarbonise building heating and cooling systems by using appropriate policy tools, including regulations and incentives, with the ultimate objective of transitioning away from fossil fuels. (pg. 37)
This will also guide our approach in public finance institutions and on the boards of MDBs and bilateral DFIs. We therefore call on other major economies, the MDBs and bilateral DFIs, multilateral funds, public banks and relevant agencies to also adopt these commitments. We commit to review our progress against our commitments. (pg. 33)
(Note: Multilateral Development Banks (MDBs), Development finance institution (DFIs)
See also Michael Kelly on Energy Utopias and Engineering Realities synopsis Kelly’s Climate Clarity
And Dieter Helm Seeking Climate and Energy Security