Europe Needs to Cut Energy Demand. Now.
The price surges in oil, gas, coal and electricity are going to wallop the continent’s economies unless industries and ordinary people start conserving immediately.
A natural gas facility in Ukraine.
Photographer: Sean Gallup/Getty Images EuropeThe world is facing its gravest energy shock since the 1970s oil crisis. Four decades ago, only the petroleum market was involved; this time, oil, natural gas, electricity and thermal coal — the world’s top sources of energy — are being hit simultaneously.
Price spikes in crude alone don’t hurt as much as they once did. That’s because, since the 1970s oil crisis, the share of petroleum in the world’s energy mix decreased: It’s fallen to 30% today from 45% in 1973. Today, however, the crisis affects nearly every fuel source with the exception of renewables. Oil, natural gas, and coal together account for more than 75% of the world’s primary energy consumption. Add biofuels — which are made of increasingly expensive corn and vegetable oils — and it’s the energy equivalent of a punch in the face.