Geopolitical news: The Energy Crises

Geopolitical news

In Geopolitical news, the most significant development is Europe’s ongoing and worsening energy crunch due to the sanctions they applied on Russia. While it might be noble to support Ukraine, one has to factor in the untold economic cost and hardships these sanctions have caused and will cause to the citizens of these nations. Against this backdrop, the best solution is a compromise.

This chart is one of many reasons that Europe is in trouble. Overall, Europe consumes a large percentage of natural gas and oil. For almost 60 years, Europe’s industrial prowess revolved around a straightforward tenet of cheap, reliable energy. During this time, despite all the tensions between the West and Russia, it remained a reliable supplier.

gas prices chart

Even though the U.S. is the World’s largest producer of Natural gas (production may have inched higher in 2022 due to Biden’s contribution), it also is the World’s largest consumer. Net-net, this makes Russia the World’s largest exporter of Natural gas. Russia is no longer interested in the West; therefore, by default, it will want to punish those that tried to seek its demise. Only two options are left: resist and die, beg, and possibly stabilise. However, by far and large, Europe’s heydays are gone. Energy wars that fall under the Geopolitical news umbrella will serve as the trigger for the next, albeit a more potent downward move.


geopolitical graphic

Russia no longer has any interest in negotiating; all one needs to do is listen to the rhetoric emanating from its leaders. Europeans who are retired or can work remotely would do well to start looking to spend winter in Turkey (on the Mediterranean side). The climate is superb, the food is fantastic, and the Turks on the Mediterranean side are used to catering and dealing with Europeans. Rentals are incredibly cheap, and all in all, one could end up saving a handsome pile of money by putting such a plan into play.

If you cannot leave, consider adding a wood-fired stove, wood pellet or possibly coal-fired stove to heat the house. It will be downright brutal this winter if Europeans don’t take a knee. Germany is already implementing draconian restrictions, and it is not even winter. Public pools are being shut down, temperatures are being regulated in buildings, limited hours for taking a hot bath are being assigned, etc.

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