THREAD 🧵

Power cuts in China, petrol shortages in the UK and rising energy prices across Europe.

What’s behind the global energy crunch? And how much worse could it get? Reporter @kaelynforde highlights some of the forces at play ⤵️
@kaelynforde Why is there an energy crunch? ⤵️

In part, it’s to do with COVID-19; consumer and factory demand for energy has come roaring back after plummeting during the early months of the pandemic, leading to supply chain bottlenecks.

aje.io/p97dwq
@kaelynforde What else? Investors have pivoted to renewable energy sources over the past 5 to 10 years as part of a global push to address climate change.

This has led to a lack of investment in fossil fuels, which analysts say is contributing to current issues.

🔗: aje.io/p2xzdw Image
@kaelynforde So will we see more investment in polluting fossil fuels? ⤵️

Oil demand is expected to climb over the next several years even amid a push toward green energy.

And prices for oil are currently hovering near $80 per barrel - a three-year high.

🔗: aje.io/3mmvdt Image
@kaelynforde The countries with the cheapest petrol include mostly oil-rich countries according to globalpetrolprices.com:

• 🇻🇪 Venezuela - $0.02 ($0.09 per gal)

• 🇮🇷 Iran – $0.06 ($0.27 per gal)

• 🇸🇾 Syria – $0.23 ($1.04 per gal)

🔗: aje.io/3mmvdt Image
@kaelynforde What’s behind the UK petrol crunch: Brexit or the COVID pandemic? ⤵️

Several experts told Al Jazeera that the crisis is being driven by hiccups in distribution relating to a shortage of lorry drivers, and not a lack of petrol supply.

Read more: aje.io/q96x46 Image
@kaelynforde Who has the most oil? ⤵️

Venezuela, Saudi Arabia and Iran have half of the world’s 1.55 trillion barrels of proven oil reserves. The largest reserves among non-OPEC countries include Russia and the US.

Read more: aje.io/3mmvdt Image
@kaelynforde What about coal and gas? ⤵️

China uses more coal than the rest of the world combined, according to Columbia University’s SIPA Center on Global Energy Policy. It is also the world’s leading coal producer, but the supply crunch has forced it to ration.

🔗: aje.io/p2xzdw Image
@kaelynforde So what happens next? Well that remains to be seen ⤵️

The push-pull — between meeting energy demands now and investing in renewable energy sources that help the planet long-term — is a big part of the current crisis worldwide.

🔗: aje.io/p2xzdw Image

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