Headlines are highlighting Europe’s energy challenges at present, with extremely high natural gas prices shocking consumers and corporations. But this was entirely predictable, and in fact was predicted. The real problem was the pivot to natural gas as a bridge fuel, and too much focus on building efficiency instead of fuel switching.
This US data shows a clear picture that has implications globally. The fracking and shale oil boom of the 1990s to 2010s led to a period of unnatural stability in natural gas prices, and at a historically low level.
The fracking companies started bankrupting in 2019 because their debt-fueled business model and race for the bottom was unsustainable. The COVID crisis put more pressure on them with globally reduced demand for both oil and gas, so more went under or significantly diminished operations.
A few European countries banned fracking entirely, given its significant negative externalities of methane leakage, aquifer pollution, microquakes and general pollution.
For the rest of this article: https://cleantechnica.com/2021/10/07/europes-current-energy-crisis-was-predictable-and-was-predicted/