Politicians and families fear the coming winter, the lack of energy and its high prices due to the reduction of Russian supplies. But next winter will be even worse, the leaders of the powerful oil and gas companies warn. Governments should therefore prepare for even bigger demonstrations and strikes than recently took place in France, Germany or the Czech Republic, the CNBC server wrote.
The global economy is facing an onslaught from many sides, because war in Ukrainelack of oil, gas and food e high and worsening inflation. Concerns are at the center of the coming winter, especially in Europe. The cold, combined with the shortage of oil and gas resulting from Western sanctions imposed on Russia for the invasion of Ukraine, threatens businesses and people’s living standards. But as much as people and politicians are concerned about this year’s winter, they should be more concerned about the winter of 2023warned leaders of the oil and gas industry at the Adipec conference in Abu Dhabi.
The situation in Czech industry worsened considerably in October. It’s the worst in the past two and a half years
Conditions in the Czech manufacturing sector worsened considerably again in October. The decline in the health of the sector accelerated for the second consecutive month and was the largest since May 2020. In October, the PMI index fell to 41.7, from 44.7 in September. S&P Global reports it. The 50-point level in the index is the dividing line between growth and decline. The index therefore signaled a sharp deterioration in the operating conditions in Czech manufacturing.
“We have a hard winter ahead of us, and after that it will be even more difficult next year, because gas reserves available in Europe in the first half of 2023 will be significantly lower than those available in Europe in the first half of 2022”Said Russell Hardy, CEO of the leading oil company Vitol.
The fields are filled – with Russian gas, which will not be there next year
BP CEO Bernard Looney agrees. “Energy prices are approaching unsustainable, with some people already spending 50 percent or more of their disposable income on energy,” he said. Thanks to a combination of high levels of gas storage, according to the International Energy Agency, Europe’s gas reserves are about 90% full this winter. including the Czech Republic – and public spending packages to subsidize people’s accounts, Europe can handle the crisis this year. “This winter is decided,” Looney said. “But many of us fear that the coming winter in Europe may be even more difficult,” He added.
Bad news for Fiala. Electricity in the Czech Republic has become the most expensive in the EU
The average price of electricity in the European Union increased significantly by 15% year on year in the first half of the year. In the Czech Republic, growth was the highest at 62%. The Czech Republic is followed by Latvia (with an increase of 59%) and Denmark (plus 57%). This is apparent from the data published by the European Statistical Institute Eurostat. The rise in energy prices is greatly affected by the Russian military aggression in Ukraine.
A large part of the current reserves is made up of Russian gas imported in recent months as well as gas from other sources, which was easier than usual to buy as the main Chinese importer bought less due to its slower economic activity caused by Beijing’s tough anti-covid measures. “We are in good shape for this winter,” said the head of the Italian oil and gas giant Eni, Claudio Descalzi. “But this winter is not the problem. It will be next because we will not have Russian gas – next year it will be 98 percent less, maybe none“, he claims.
The protests have already started
This could lead to serious social unrest. Small and medium-sized protests have already appeared in Europe. Analysts warn that anti-government protests, including demonstrations and strikes in Germany, Austria, in France self in the Czech Republic in September and October – attended by tens of thousands of protesters, many of whom have recently seen their families’ energy bills rise tenfold – they may be a little taste of what’s to comebelieves CNBC.
“We have seen that any price shock at gas pumps or something as simple as LPG for cooking can cause unrest,” said Datuk Tengku Muhammad Taufik, CEO of the Malaysian oil and gas company Petronas.
The largest hydroelectric power plant in the world has gone silent. A stark reminder that renewable resources have their limits
China’s Three Gorges Dam on the Yangtze River was closed in the summer due to drought, as were other hydroelectric power plants from California to Germany. It’s a stark reminder that renewables are not all-powerful and a great irony that it’s happening at a time of growing global demands to cut emissions and switch to sustainable sources, Bloomberg wrote.
Much of the protesters’ anger is also directed at energy companies, which are making record profits as they charge higher and higher prices. For example, the Saudi Aramco oil company, owned by the state of Saudi Arabia, increased net profit by 39% yoy in the third quarter to 42.4 billion dollars (over one trillion crowns) and exceeded expectations.
In response, many of the CEOs who spoke to CNBC said it was a supply and demand issue in the market and so on. it is up to governments to introduce policies that better support investments in low-cost energy.
The EU economy has suffered a sharp slowdown, growth is just above zero
The economy of the European Union in the third quarter grew by 0.2 percent compared to the previous three months, according to seasonally adjusted data. This is a significant slowdown from the second quarter, when the economy grew 0.7%. This was stated by the European statistical office Eurostat in its quick estimate. In a year-over-year comparison, gross domestic product (GDP) increased by 2.4%, while in the second quarter it increased by 4.3%.
All about inflation
Scarecrow of inflation. What causes it? How to defend yourself from her? How to invest, where to save, where are there decent interest rates, which bonds are worth? How do the state, the government and the NBC fight inflation? Who and why increases the price and by how much? How to deal with price increases? Is it the right time to get a mortgage, will interest rates rise or fall and why? Context, suggestions, suggestions, warnings.
High inflation worries not only Czechia, but also other European countries and the United States. See the overview in the world.
