Europe in Focus: Energy Reliability, Reliance and the need for alternatives

Installation of a cost-effective, sustainable energy source

With the ever-present call to ramp up oil production in recent weeks (most notably due to instability & output concerns in the Eastern European region) governments and energy executives are demanding more fossil fuel production and renewable energy sources to reduce reliance on places such as Russia.

Just a handful of days ago, the CERAWeek energy conference commenced in Texas on the exact day when crude prices reached levels not seen since the financial crisis back in 2008. Investors are tending to shun Russian exports of crude oil and alternative fuel types, creating what could be the biggest unsettlement in the global prices of energy, seen for years. Russia exports approximately 5 million barrels of crude oil and 3 million barrels of alternative energy products each day alone.

“The issue is, that the world is incapable to replace such an extraordinary supply of 8 millions barrels daily which Russia is currently responsible for’’, suggested General Mohammad Barkindo (Secretary of OPEC).

John Kerry, the United States’ Envoy on Climate Change went a step further by suggesting that people ‘must come to the realisation that higher energy costs with last for a substantial length of time’.

With outright bans on energy imports from Russia being considered by both the European Union and North American Pact, renewable energy advocates are arguing there is no better time to make the mass transition to cleaner fuels, through additional investment in renewable and sustainable options. Few could argue that further investment in fossil-fuel at this time, will only increase the dependency of European nations on oil and gas from outside the Union, whilst contributing to the continued heating of our planet.

The Evidence is Clear

Gas reliance, European countries (The Economist, 2019)

The European Union accounts for almost half of all crude oil exports from Russia — (United States Energy Info. Admin.)

“We have to talk about diversification, we need more renewable energy in the basket — to have less energy dependence in Europe,” explained Josu Imaz, Chief Executive of Spain’s Repsol.

After reeling in both production and spending during the pandemic, the oil industry is in no fit state to match the growth in consumption requested in such a short time, due to the current fuel crisis. Furthermore the USA is still producing less than a million barrels of crude, below its peak in 2013.

What are our alternatives?

It can be suggested that the issue of un-renewable, expensive fossil-fuel sourced energy supplies can be fixed by democratising and decentralising the supply of energy.

Some argue that large energy providers have dominated their respective markets for too long and thus hike prices recklessly whilst writing unhedged call options to their customers in order to generate profits. When these MNC’s are correct, their board and executives profit from huge sums of money. When wrong, governments can be all too quick to bail them out, and in doing so, put further financial strains on the exact people they are supplying the energy for in the first place. This almost always results in a double whammy effect of taxation and price increase for the consumer in the long-run.

This can change. This will change.

To put it simply:

The aim of Northern Lights Token is to generate and supply power in a fair & democratic manner from sources that we know are not damaging to the planet.

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