Oil / Commodities - Russia’s invasion of Ukraine is upending the global transition away from fossil fuels in the fight against climate change. The war is slowing the shift and instead breathing new life into old energy. However, it also bolsters the argument that adding more EVs to roads and installing additional wind turbines and solar panels can boost energy independence. But for now, without Russian energy, countries around the world are forced to make hard choices on how to fuel their economies, putting the energy transition at a crossroad. The rush to punish Russia by deserting its energy offerings has led to a short-term surge in demand for coal, despite its grim long-term prospects. The demand has sent thermal coal prices to $44- a metric ton, more than five times the price a year earlier. Soaring gasoline prices have also compelled President Biden to order an unprecedented release of emergency stockpiles from the strategic petroleum reserve. In the EU, efforts to end energy dependence on Russia has several member states considering development of new import terminals for LNG – these include Germany, Latvia, Estonia, Greece and Italy. The push away from Russian natural gas is also leading the EU into billions of dollars in new commitments for a low-carbon hydrogen market.
Newsletter - April 19, 2022
Newsletter - April 19, 2022
Newsletter - April 19, 2022
Oil / Commodities - Russia’s invasion of Ukraine is upending the global transition away from fossil fuels in the fight against climate change. The war is slowing the shift and instead breathing new life into old energy. However, it also bolsters the argument that adding more EVs to roads and installing additional wind turbines and solar panels can boost energy independence. But for now, without Russian energy, countries around the world are forced to make hard choices on how to fuel their economies, putting the energy transition at a crossroad. The rush to punish Russia by deserting its energy offerings has led to a short-term surge in demand for coal, despite its grim long-term prospects. The demand has sent thermal coal prices to $44- a metric ton, more than five times the price a year earlier. Soaring gasoline prices have also compelled President Biden to order an unprecedented release of emergency stockpiles from the strategic petroleum reserve. In the EU, efforts to end energy dependence on Russia has several member states considering development of new import terminals for LNG – these include Germany, Latvia, Estonia, Greece and Italy. The push away from Russian natural gas is also leading the EU into billions of dollars in new commitments for a low-carbon hydrogen market.