Europe’s Energy Crisis Forces Factories to Go Dark
nytimes.com
nytimes.com
More like "the idiocy and lack of actions from EU leaders on the energy front after the 2014 invasion of Crimea has doused the businesses with new risks".
Energy mitigations off Russian gas should have started 8 years ago, not wait for Ukraine to get blown up.
That's the problem in general in our modern economy. No reserves, no resilience, no backup plan
It's precisely that lack of action that proved to Putin that out leaders are spineless addicts to his cheap gas and he can play them like a fiddle.
Also, let's not forget the lucrative positions Gerhard Schröder got at Russian energy companies in exchange for his "help" in getting Germany hooked on Russian gas.
everything would have been avoidable if we gave putin some warranty of not meddling with ukraine, putting corrupt people in a non elected government. and Im not saying that what is happening know is right. A russian invasion of ukraine is wrong. but that was definitely something USA actions in Ukraine expected long before 2014
Ask the Eastern European countries who've had to suffer 50 years of communist atrocities thanks to WW2 invasion of their countries by Russia and the USSR.
This reply is just a distraction and doesn't refute the fact that you're just a rambling fool who tried to argue both that "heroic Russia beat the Nazis" but "That was the USSR, long collapsed, and not Russia causing suffering in the Warsaw pact countries!'.
BTW I don't hate Russia the country, I have friends who are stuck there and don't know what tomorrow may bring (including a couple who might both be called to war (apparently being a woman might not save you from mobilization if you're a doctor), and they have 2 young kids), but I hate the corrupt idiot currently holding it hostage...
Yeah, your style of argument is familiar to me, the style of the feeble-minded and people who are emotional and whose knowledge aren't full knowledge but just gathered from random blogs, tweets, and whatever propaganda crap you're reading. Incoherent, and when people point it out, bring out other topics in hopes that they get distracted and engage the new topic instead. When challenged, you'd rather not discover to see whether the opponent is right, but you'd rather protect your own ego and convince yourself that they're the deluded ones, and you're the one who knows the truth. "I can't acknowledge that, to acknowledge that would mean admitting I was an idiot yesterday, and I'm not an diot!"
Sorry dang, and HN, for engaging the trolls...
Can't go much more incoherent than that.
It's hard to give a precise date since Europe was torn by so many wars over centuries, but when it comes to the present situation, I'd say it was the Bolshevik Revolution. European countries were afraid the communist movement spreads everywhere - and in fact it became quite popular in several countries.
Then, after WWII, Russia established their military bases in all of Eastern Europe and after that the Cold War begun. When the Berlin Wall fell, everybody was so happy because we really hoped it's the end of tension between Russia and the West. It didn't last long, though - Putin's speech in Munich in 2007 made it clear he has a completely different vision.
So, to briefly answer your question, for the most part of the last century, actually.
Nevertheless, I believe Germans as a whole realize how mistaken the overall policy of their government is and exercise some pressure to change that. Not shutting down nuclear reactors would be a good first step that would benefit the whole EU, not just Germany.
This was the theory sold by German elites to the populace over obnoxiously overfunded German public media.
Any reasonably size company could have started doing things to insulate themselves. Things that were compatible with the environmental policies governments were already pushing.
Companies that choose not to hedge make more profit in good years but must come begging to the government for bailouts or price controls in bad years. (i.e. shareholders pocket the profit while taxpayers cover the losses)
Depending on the government's response to those kinds of requests, you end up with more of one sort of company or the other.
I'm not in the glass making business so I don't really know what the possibilities are, and the answers are different for different companies.
Point is this situation was foreseeable, and slot of the things companies should be thinking about anyway.
Oh wait, neither are the officials of the EU commission. Hmmm
I don't see why I should feel represented.
It goes without saying that this amount of felt representation doesn't increase with EU bodies (save the parliament)
But the most simple excuse for a bad government is to blame the opposition, when you were in power for a long time and you can't blame the opposition hen you blame the EU and US.
Personally, I don't hold ONLY the commission accountable.
But the problem here is that the amount of learning (or even just admitting mistakes) is zero, so I don't see how they're not doing more stupid things down the line.
What do you mean? EU commission should force Germany to like nuclear? We all need to blame our politicians, UK, Germany, Romania (... the rest) - we all could have done a better job but corrupptuon and greed of our local politicians screwed us the citizens.
The thing though I am puzzled about is this big price increases, I am not sure if I can blame the EU commission or is again the local politicians and greedy companies that profited to raise all the prices.
My bet is price controls (and I don't mean the stupid oil price cap) and capital controls next.
The glass company in the article has had 8 years to consider what would happen.
8 years where in could have investigated and invested in more efficient kilns, electric kilns, price hedging, etc.
This isn't about the good of the people it's about the good of the company. They took a business decision not to protect themselves against this eventuality, why is government to blame for that business decision?
All the while the EU has been encouraging all these measures anyway. Has the company not considered what happens if they can't burn gas in the future? I don't know if France has a net zero target, but even if it doesn't it is a possibility.
https://en.wikipedia.org/wiki/Mexico%E2%80%93Russia_relation...
https://www.reuters.com/article/us-mexico-russia-military-id...
why do you think he rejected it? greater integration meant NATO bases. And this guy knew (because putin and russia always said it) that NATO next to russia was a big no go. the next logical steps are easy to understand. europe and USA backing protesters meant that if russia did not act they would be NATO bases next to them. fair elections should have happened and people should have voted for yes/no they want to join europe. then putin wouldn't have been able to attack Ukraine. Instead USA just used their old playbook like they did in middle east
Putin would have always been able to attack Ukraine. He's not bound to some sort of world government contract. He can do anything in his power as the President of Russia, and that includes attacking Ukraine, even if for stupid or inconsistent reasons. There's nothing that could make him unable to, other than stopping being President.
i was answering this. he is not - unlike the western press tends to say - stupid or incosistent. he is literaly the most consistent leader of his era. we know what he wants and what he protects. he never changed his mind on the key areas of his geopolitic view of the world. not like europe or us presidents do every new election or new mandate to get more voices. Putin always said that ukraine was to remain neutral. and if you play around words then by your logic even biden would be able to press the red button and extinct mankind for stupid or inconsistent reasons.
Doesn't matter one bit. He's free to change his mind on that at any time. He can't make a promise that's binding on himself, he can always go back on his word and nothing can be done about it.
> and if you play around words then by your logic even biden would be able to press the red button and extinct mankind for stupid or inconsistent reasons.
I'm not playing around with words. That's exactly what I mean. He really can.
As to fair elections, here's some numbers about support for joining the EU from Ukranians (which you can conveniently dismiss by saying the pollers are "controlled by the West"). https://en.wikipedia.org/wiki/Ukraine%E2%80%93European_Union...
EU tried to commit economic suicide with covid lockdowns and the Ukraine war. Seems they finally succeeded. Too bad I earn my salary in Euro. Because of Brussels I can buy almost as half as last year.
Secondly, this needn’t have been tough times, if the EU had prepared. Or failing that, recognized that it can’t declare economic war on Russia and enjoy gas deliveries as usual.
Thirdly, “stable, uneventful bliss” must be a poor attempt at humor. Did you miss the multi-year global pandemic that we still haven’t recovered from?
I don't think there's a politician who didn't see that sanctioning Russia could lead to an unstable oil and gas situation, but on the whole it was deemed worth it (and in polls most people seem to agree).
The EU was forced into a bad situation due to the recklessness of Moscow.
That said the writing was on the wall 8 years ago or so, and the EU really should have been diversifying away from dependence on Russia.
The market shock is caused by lack of supply caused by Russia cutting deliveries, which in turn was caused by the EU declaring economic war on Russia.
It is precisely this debate which is being suppressed through either public shaming or by directly blaming Russia and omitting the role of the EU (and US) in this economic fiasco.
So, yeah, we decided to impose those sanctions, knowing it would affect us badly, but we did it anyway. Most people seem to support this, at least for now.
What point are you trying to make? That we should blame our governments for doing something most of us agree is painful but necessary?
But yeah, Germany's refusal to buy gas from the US after Trump said they should is the root cause of all of that.
Having a basis, where one supplier/resource never accounts for more than let's say 20% makes a system much more resilient. I think it is "just" simple math, that was ignored before because it was cheap and easy at the time.
One could have so nicely pitted Russia against Iran. But Trump wanted to sell US oil
Now Europe is getting gas from other souces, albeit more expensive ones. And the EU alone is delivering 2.5 billion worth of weapons to Ukraine.
Once this war is over, I am all for normalized relations with Russia, because those make long term peace easier. Propably not worling under a Russian leadership that intentionally choose war.
Yes, I am aware. I didn't contend that Europe isn't doing anything to resist Russia, I'm alleging that increasing energy dependence on Russia was a mistake, especially after the 2014 invasion.
> Keeping gas from Russia flowing kept a door open for Putin and prevented escalation.
Big "citation needed" here. As far as I can tell, "keeping gas flowing" (to the extent that it is) is directly paying for the war (notably Russian gas is bought and paid for in Rubles, helping to prop up the Ruble's value)--quite the opposite of "preventing escalation".
Context matters, nothing haooens in a vacuum.
And despite all the issues in thr last months, there were no blackouts, gas kept coming in and industry carried on.
- the relative dearth of natural gas does not just affect Germany...
- ...it also affects countries around Germany which use natural gas for power generation...
- ...which means less power is available for export by those countries to Germany...
- ...just at the start of winter which is the season when electrical power demand peaks.
I live in Sweden where blackouts only occurred due to natural disasters, mostly storms taking out local power distribution infrastructure. Things have changed here, both due to the closure of half the nuclear capacity which has now been acknowledged by the CEO of the state-owned backbone power distributor "Svenska Kraftnät" to be the main cause of the problems middle and southern Sweden experiences [1] as well as due to the larger demands placed on export capacity due to the problems in Germany and elsewhere. There are warnings for potential blackouts here as well which hitherto was something unthinkable given the overcapacity Sweden normally has.
[1]https://sverigesradio.se/avsnitt/svenska-kraftnat-i-varsta-f...
And that is also the case. What options would there be against Russia without the possibility of economic sanctions?
War! And not only in Ukraine
Not fueling their imperial fanfiction to begin with. The original mistake was offering them aid after the fall of the USSR without requiring steps towards liberal democracy in exchange.
That led to the rise of oil and gas oligarchs meanwhile the ordinary people suffered. That's why they voted for a "strong" leader: Putin.
> What options would there be against Russia without the possibility of economic sanctions?
Continue to supply arms to Ukraine without an energy crisis?
With another Russian leader it might have worked. But Putin, for whatever reason, chose potential glory over economic prosperity. A move so foreign to European democracies that we refused to see it coming.
There couldn't possibly be anything more false. This horse has been beaten to death already and should just be let to die.
European countries had entangled economies and were still going to war with each other. France and Germany were each other's biggest trading partners and that didn't stop them fighting each other in WW1 or WW2.
The reason why we have had peace after WW2 is the implementation of fully fledged democracies with separation of powers in the major European leaderships along with US peacekeeping and the Marshal plan.
Russia was not a democracy anymore after the 1993 coup since the president there could do whatever he wants without the parliament able to stop him and therefore should not have been trusted as a fair trading partner.
He stated his reasons. He believes there was a western-backed military coup in 2014. Ukraine failed to implement the Minsk agreements. Ukraine is attempting to join NATO. He believed an assault on the breakaway republics was imminent. He believes Ukraine is harboring literal Nazis, committing crimes against humanity against ethnic Russians.
Those are more or less the stated reasons.
IMO, Ukraine was a vassal state, much like Puerto Rico to the US. Maybe the relationship wasn't so formalized, but Russia viewed Ukraine as theirs one way or another. For some reason, people in the western world operate on some kind of technicality system, as if words on paper make a difference.
Yes, we call this "rule of law" and it works really well in the west.
We have pretend rule of law. We pretend the law matters, and we pretend to follow it.
In any case, Putin argues that the war (or in his parlance, SMO) is legal under UN precedent in Yugoslavia, that a breakaway republic may be recognized even if the former nation dissents.
IMO, this whole ordeal could have been avoided, but Western backed Ukraine decided it was better to fight than capitulate to Russia's demands.
Ukraine, as we can see in reality, isn't Russia. Don't identify as Russia and has not been wanting to be part of Moscow-ruled territory for a few decades.
How exactly could this whole ordeal been avoided? Letting Putin continue the dismantling of Ukraine through civil wars and separatist movements?
Not have a western backed military coup in 2014, for starters?
As I said, Ukraine was essentially a vassal state of Russia. The coup in 2014 meant to overthrow vassal status. This kicked off a civil war.
There's a series of events that lead to the current war which could have been handled differently. But Nationalism won out, people decided that giving autonomy to some regions was unacceptable and worth fighting for.
Many people think this, but it's factually incorrect.
While we're talking about suspicious foreign involvement, let's talk about the $15bn that Putin offered Yanukovych (and which Yanukovych accepted) hours before police were ordered to crack down on protests. Or the documents which showed that Russian officials served as advisers in the crackdown on protesters (operations Wave and Boomerang) including the use of snipers and the planned use of 22,000 security troops in Kyiv alone.
I'm sorry, but this is a basic fact of the events, and you are tragically misinformed. Many people are misinformed, many media outlets played up the 'peaceful protests' angle, but there is no doubt, there was an armed insurrection.
I think this article offers a glimpse of what was being reported at the time [1]. Scores of police captured, 3 killed, 28 shot. This was prior to the presidential palace being captured, that happened once the police flipped sides.
1: https://www.politico.com/story/2014/02/kiev-ukraine-proteste...
There's no pretense. We mostly do follow the law, and the law very much matters. The Iraq War is the exception that proves the rule.
> IMO, this whole ordeal could have been avoided, but Western backed Ukraine decided it was better to fight than capitulate to Russia's demands.
"WWII could have been avoided, but Allied Europe decided it was better to fight than capitulate to Nazi demands." Obviously nations are going to fight for their sovereignty.
> In any case, Putin argues that the war (or in his parlance, SMO) is legal under UN precedent in Yugoslavia, that a breakaway republic may be recognized even if the former nation dissents.
Anyone can argue that anything is legal, that doesn't make them right. Notably, the UN collectively disagrees with him.
It’s interesting to see that most people consider Europe was tricked by Russia, when in fact this relationship was both wanted and good for both parties.
Based on who the EU’s energy suppliers are, I can’t seriously consider that the EU cares about democracy or international law so much that it would perform economical self-sabotage. My theory was that the US gave the EU an ultimatum on Russia and it caved.
This wasn't too bad for a while, until Asia and much of the 3rd world started to industrialize. This put upward pricing on energy. Europe understood their waning influence, and formed the EU. If you want to do business in Europe, you will be subject to a lofty VAT and other regulatory requirements.
This worked for a while. Since Europe was the destination for goods, industrialized former colonies sold their goods to Europe. As the quality of living has increased world wide, there's now demand for goods elsewhere.
Where does this leave Europe now? They have little energy, little raw materials, little industrial capacity. The rest of the world no longer needs them. If a small nation needs capital, it can get it through BRICs on better terms. China and Russia are trying to get into the aviation market. European engineering services will be replaced by other countries.
Take a picture Europe. It's all downhill from here.
But maybe the EU is facing doom, in which case it wont matter that it turns into a desolate, deindustrialized waste land because I will freeze to death in the dark of a blacked out winter anyway. Or not, only time will tell.
The Merit-Order system doesn't fit the current situation.
Nuclear energy and wind and PV energy are pretty cheap but electricity from gas is expensive at the moment.
But because of the merit order system all electricity is sold at the price of gas produced energy independent of the real production cost.
So if the price of one needed energy source rises, the prices for all skyrocket, not matter if the expensive one is needed for 1% or 50% of the energy demand. All costs the same of the most expensive one.
Humanity needs more energy, not less. I’m tired of so-called “progressives” who are against the progress of the human species. Go suicide yourselves if that’s what you want but leave me alone, I don’t want to freeze.
Also, however "cookie cutter" coal power plants are, I doubt they can be spun up in months.
So if only 1 kW has a high price, all have.