'Expect energy prices to continue rising – there’s a perfect storm right now'
A “perfect storm” is leading to energy supply shortages globally while demand is on a steady rise
South Africa needs a long-term energy policy that would make us less vulnerable to global trends
The world is facing an unprecedented global energy crisis.
Energy prices have been increasing dramatically in Asia and Europe, and the US response will have a dramatic effect. In China and other major economies, the demand for energy shot up as they began to recover from the pandemic.
In Europe, a cold winter depleted gas reserves, while a long spell of wind still days reduced power supply to the grid. Russia, one of the EU’s biggest suppliers, is refusing to provide more.
John Maytham and economist Dr Iraj Abedian delved into the factors that have created the energy crisis and discussed predictions of a foreboding future (scroll up to listen).
Abedian is the CEO of Pan-African Investments and Research Services.
He is a graduate of the University of Cape Town (UCT) and holds a PhD in economics from Simon Fraser University in Canada.
He was a professor of economics at UCT for over 18 years before joining Standard Bank as Group Chief Economist.
Some suppliers such as Iran are under embargo… The sudden surge in demand [post lockdowns] exceeded the planned supply… Russia, the main supplier to Europe, is using gas for political point-scoring… Global logistics are not as well oiled as it was before Covid. It’s a bit of a perfect storm at the moment.Dr Iraj Abedian, CEO - Pan-African Investments and Research Services
There will be a steady rise over the next six months in demand for energy… If global growth maintains its current momentum… we can only expect energy prices to go up… Expect rising prices globally over the next six months…Dr Iraj Abedian, CEO - Pan-African Investments and Research Services
The effect on the welfare of our nation is quite severe… We need to as a nation have a long-term energy policy… less at the mercy of global trends… The quicker we go to cleaner energy, which is locally produced…Dr Iraj Abedian, CEO - Pan-African Investments and Research Services
Source : https://www.123rf.com/photo_111558388_empty-fuel-tank.html?term=empty%2Bfuel%2Bgauge&vti=odzfiusmfoyi3rxno4-1-96