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Gas in Crisis?
The world is changing fast. There is an energy crisis on the horizon for Europe. If we take natural gas as an example it would be seem at first glance that countries such as Norway, Britain and the Netherlands have sufficient gas reserves to supply Europe for some time to come. However, this is misleading; most of these reserves will be used up over the next ten to twenty years. Even if more deposits are found in the North Sea or the Atlantic Ocean the problem will still not be solved. The continent must turn to Russia where there are huge quantities of gas underground. This country is in the happy position of being the gas giant of the world.
Other nations are also approaching Moscow to cover their energy requirements. The economies of countries such as China and India are expanding dramatically and they are going to need massive amounts of energy, which includes gas. Will there be enough of this commodity to satisfy the needs of Asia and Europe? This is by no means certain, and the consequence could be a shortage of gas imports, which could lead to power cuts in some European countries in the future.
There is one other source of gas – LNG, liquified natural gas. This is transported by ship from such places as the Arabian Peninsula. Nevertheless, it is questionable if these supplies can ever be a realistic alternative to gas which is imported by pipeline; the simple fact is that the volumes shipped would never meet demand.
People are therefore right to be worried. Political leaders and companies must tackle this issue; we need a secure and reliable supply of gas for the long term. This inevitably means that wholesale prices will soar, but this is still better than the nightmare scenario of freezing in our homes or having no power for our industry.