Europe’s Just Made A Fatal Mistake, Massive Companies Shutdown, Prepares For Worst

Europe’s Just Made A Fatal Mistake, Massive Companies Shutdown, Prepares For Worst #oil #gas #economy The energy crisis that hit Europe due to Western sanctions following Russia’s conflict with Ukraine resulted in the continent facing significant financial losses, amounting to hundreds of billions of dollars. Currently, ongoing conflicts in the Middle East, particularly the Houthi conflict in the Red Sea, pose potential threats to future energy supplies. Although climate change remains a critical issue, immediate attention is focused on ensuring “energy security,“ which presents substantial investment opportunities for stakeholders on both sides. If You Like This Video: Like, Share, Comment And Subscribe. This Means A Lot To Us! Thanks For Watching Our Video: Europe’s Just Made A Fatal Mistake, Massive Companies Shutdown, Prepares For Worst Amid the peak of the Russia-Ukraine conflict, European nations turned to coal burning. While this practice has decreased, natural gas has regained importance as a primary means to transition towards green energy. In early February, Germany earmarked $16 billion for constructing four natural gas power plants to complement its renewable energy expansion efforts. Moreover, Austria recently made its most significant natural gas discovery in four decades, capable of boosting domestic production by 50%. Meanwhile, as the largest economy in the EU, Germany has increasingly relied on American liquefied natural gas (LNG). McKinsey observes that Europe now influences global gas markets, with European hub prices determining global LNG spot prices. However, this perceived security is challenged by the Biden administration’s recent suspension of new LNG projects. Nevertheless, one thing remains clear: Natural gas is experiencing a resurgence in Europe, and integrating it with domestic sources and renewable energy is crucial for ensuring energy security. Industries at Risk: Identifying Vulnerabilities Europe’s solar sector is facing its most severe crisis in over a decade due to intense competition from China, which is adversely affecting manufacturing and hindering Europe’s goal of achieving greater energy independence. Last year, the EU witnessed a record number of solar panel installations, which was beneficial for climate objectives. However, this surge was partly fueled by an influx of Chinese equipment, leading to significant profit declines for local manufacturers. An analysis of industries heavily reliant on energy, such as manufacturing, transportation, and agriculture, reveals vulnerabilities. Despite calls to enhance domestic energy infrastructure, governments have been slow to support the struggling industry. The latest setback occurred when Swiss panel maker Meyer Burger Technology hinted at closing its production site in Freiberg, Germany—one of Europe’s largest—and shifting investments to the US. If finalized, the closure could impact around 500 employees. Solar energy has been driving Europe’s renewables expansion due to falling costs. However, this has disadvantaged European panel producers who have struggled to scale up supply chains for global competition. Meanwhile, governments face pressure to advance energy transition but lack the necessary budgets to assist European producers. European solar power manufacturers have alerted the EU about the looming possibility of bankruptcy due to current market conditions. They are urging the bloc to implement “emergency measures“ to sustain the industry. The European Solar Manufacturing Council (ESMC), representing over 80 solar photovoltaics (PV) enterprises, has emphasized the need for support within the next two months in a letter to President Ursula von der Leyen of the European Commission. Otherwise, they warn of potential relocation or bankruptcy. However, not everyone supports this approach. German Economy Minister Robert Habeck has expressed concerns in a letter to the EU, warning that tariffs on Chinese imports could hinder Europe’s remarkable expansion of green energy, potentially increasing costs for 90% of the PV market, as reported by Reuters. Habeck highlighted the risks faced by European companies assembling and installing solar panels using Chinese components. This situation has been particularly challenging for France, which has ambitious plans for European green energy reindustrialization. Germany’s solar support is under threat due to a budget crisis, while Spain is contemplating tariffs on solar panel imports. A government official from the Netherlands informed Reuters that the country aims to subject solar PV imports to the EU’s carbon border tax. In contrast, Italy recently announced a €90 million investment in a solar panel factory in Sicily. Proposed EU measures include legislation to expedite permits for local manufacturers and provide advantages to EU products in future clean tech tenders. More Details In The Video