Current Energy Crisis Driven by Various Factors, Inter-Regional Competition for Gas, WEC Says
"This isn't a geopolitical crisis, this is a combination of other factors. What's happening in Europe, or in China, or in Oceania, or in Latin America, or in North America, is a combination of a surprise in the return of demand where it's shifted to following the COVID-19 crisis as we come out of lockdown. More energy, more quickly, but different things may be expected in different locations. Asia has gone very big on gas demand. That is taking the market away from Europe", Wilkinson said.
"That's what happens if you rely on the market. 80% of gas contracts are covered by long-term contracts. Those are all being provided, they are all being satisfied, but what didn't happen is Europe didn't invest in a dust buffer during COVID it didn't think it needed one. On top of that, we've had weather. We are experiencing more extreme weather, we are more vulnerable to that, our systems need change", Wilkinson explained.