It seems that there is real cause for concern in Europe as the embargo on Russian gas and oil is causing nasty surprises for the end consumers.
Skyrocketing prices of natural gas and electricity has Erupoeans scrambling for alternative sources of energy.
Meanwhile, in Germany, google searches for ‘Brennholz’ (firewood) have exploded in the past few months as electricity prices are climbing ever higher.
Furthermore, Will Rhind, Founder, and CEO of GraniteShares joined Kitco News to discuss the energy crisis in Europe. Rhind indicated that alternative sources of energy have not come on line quick enough to offset the issues seen in the European energy markets.
“In the UK and parts of a lot of Europe there’s just been no investment or a severe lack of investment in traditional development, particularly in oil and gas. Over the last decade that’s really just compounding things.”
He also added:
“The solution that your politicians have tried specifically over the last couple of years is to advance more sustainable sources of energy, particularly green sources of energy. In the UK, for example, a lot of solar, wind power particularly, but this has not come online quick enough and in any way, shape or form, in this sort of size needed to offset these losses that we’re seeing in traditional energy sources.”
Nuclear power to the rescue
Moreover, Rind believes that nuclear power is slowly gaining momentum despite being pilloried for decades by politicians. The investment in this sector, according to him, could pay dividends in the form of sustainable green energy.
The current energy crisis will show its true effects after the winter months when the possible demand destruction among consumers happens. Only after that occurs, could demand destruction start to bring down inflation, but energy prices will play a key role in this process.
It seems in the end, for the European consumer, the only strategy left at the moment is to hunker down, tighten the proverbial belt and look for alternative heating solutions to live through the cold winter that is coming.
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