{"id":629489,"date":"2023-04-14T17:00:00","date_gmt":"2023-04-14T22:00:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/14\/the-economics-behind-europes-energy-rebound\/"},"modified":"2023-04-14T17:00:00","modified_gmt":"2023-04-14T22:00:00","slug":"the-economics-behind-europes-energy-rebound","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/14\/the-economics-behind-europes-energy-rebound\/","title":{"rendered":"The Economics Behind Europe\u2019s Energy Rebound"},"content":{"rendered":"<div id=\"pagecontent\">\n<div>\n<div id=\"singleArticle__sidebar\">\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/avatars\/medium\/50381fcea6141763cced7f0cb1297f7a.jpg\" alt=\"Haley Zaremba\" title=\"Haley Zaremba\" previous-src=\"data:image\/png;base64,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\"><\/p>\n<p>Haley Zaremba<\/p>\n<p>Haley Zaremba is a writer and journalist based in Mexico City. She has extensive experience writing and editing environmental\u00a0features, travel pieces, local news in the\u2026<\/p>\n<p><a href=\"https:\/\/oilprice.com\/contributors\/Haley-Zaremba\">More Info<\/a><\/p>\n<\/p><\/div>\n<div>\n<p><h3>Premium Content<\/h3>\n<\/p>\n<ul>\n\t\t\t\t\t\t\t\t\t    <\/ul>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"singleArticle__content\" data-spons=\"0\" data-id=\"33505\">\n<p><span>By <a href=\"https:\/\/oilprice.com\/contributors\/Haley-Zaremba\">Haley Zaremba<\/a> &#8211; Apr 14, 2023, 5:00 PM CDT<\/span><\/p>\n<div id=\"key_points\">\n<ul>\n<li>The European energy market faced a crisis due to the collapse of the energy partnership with Russia and the invasion of Ukraine.<\/li>\n<li>The unseasonably warm winter in Europe helped reduce natural gas consumption, but rising costs played a bigger role in lowering energy consumption.<\/li>\n<li>Despite the challenges, Europe managed to lower its winter gas usage by 16%, exceeding the European Union\u2019s most optimistic targets and avoiding the worst of the crisis.<\/li>\n<\/ul><\/div>\n<div id=\"article-content\">\n<p><html><body><\/p>\n<p>In the fall of last year, things were looking beyond grim for the European energy market. Coming on the heels of extreme energy market volatility caused by the enduring Covid-19 pandemic, Europe\u2019s single-biggest energy trade partnership collapsed. When Russia \u2013 which was providing about 40% of the European Union\u2019s\u00a0<a href=\"https:\/\/oilprice.com\/Energy\/Natural-Gas\/Natural-Gas-A-Comprehensive-Guide-To-The-Worlds-Most-Crucial-Fuel.html\" target=\"_blank\" rel=\"noopener\">natural gas<\/a>\u00a0at the time \u2013 illegally invaded Ukraine, energy markets quickly descended into chaos.\u00a0<\/p>\n<p>In the immediate wake of the invasion last February, Europe strongly and vocally condemned Russia\u2019s actions, and Russia strongly resented that condemnation. On both sides, energy was the only real trading chip. As Europe tried to engineer a pathway toward sanctions on Russian energy without risking the complete devastation of their own economy and the safety of its citizens, Russia flexed its muscle by\u00a0<a href=\"https:\/\/fortune.com\/2022\/09\/02\/russia-gazprom-shuts-down-gas-pipeline-to-europe-energy-crisis-prices-soaring\/\" target=\"_blank\" rel=\"noopener\">turning off the natural gas taps<\/a>\u00a0at a whim.\u00a0<\/p>\n<p>All signs were pointing toward mutually assured destruction. Natural gas prices were inflated tenfold ahead of what was certain to be a brutal winter with punishing energy prices and heating shortages plunging Europeans into energy poverty and dangerously cold temperatures. In a typical European winter, demand for gas increases more than two-fold. The Economist finds that for every single degree that the temperature drops, the average European consumes an additional 1.2kWH of energy per day \u2013 a 4.6% increase. Amid a deluge of press about the energy crisis heading into the cold winter months, Foreign Policy stressed that the media couldn\u2019t even begin to cover the extent of the looming disaster, publishing an article entitled, \u201c<a href=\"https:\/\/foreignpolicy.com\/2022\/08\/26\/europe-energy-crisis-natural-gas-economy-winter\/\" target=\"_blank\" rel=\"noopener\">You Have No Idea How Bad Europe\u2019s Energy Crisis Is<\/a>.\u201d<\/p>\n<p>And then, the winter passed with barely a whisper. Europe had somehow, unbelievably, been spared.\u00a0<\/p>\n<p>Europe managed to lower its winter gas usage by a whopping 16%, exceeding the European Union\u2019s most optimistic targets and ultimately allowing the bloc to avoid the worst of the crisis. It has been widely reported \u2013\u00a0<a href=\"https:\/\/oilprice.com\/Energy\/Natural-Gas\/Unseasonably-Warm-Weather-Could-Help-End-The-War-In-Ukraine.html\" target=\"_blank\" rel=\"noopener\">including by yours truly<\/a>\u00a0\u2013 that it was an unusually warm winter that saved Europe from a devastating energy crisis, and thereby simultaneously foreshortened the Russian war in Ukraine. But according to a new analysis from the Economist, that explanation is grossly oversimplified. While the unseasonably warm weather was integral to Europe\u2019s energy rebound, that explanation alone is far from the whole story. In reality, the picture is both complex and extremely simple, coming down to some of the most basic concepts in economics.<\/p>\n<p>A statistical model built by the Economist found that \u201ctemperatures alone explain only around a third of the true reduction in gas demand this winter.\u201d Even after taking the mild weather into account, \u201cEuropeans still reduced their gas use by around 12%.\u201d Instead, the bulk of the reduction in consumption can be explained by rising costs, which reduced demand. Simple as that. Most European gas bills were facing bills about 60% higher compared to the previous year, so they cut back on consumption. The Netherlands, the UK, and Germany saw the sharpest absolute drops in energy consumption: \u201cgas usage per person was 24% lower in the Netherlands, 18% lower in Britain and 7% lower in Germany, compared with predicted levels.\u201d<\/p>\n<p>While the problem largely seems to have solved itself, the Economist warns that a long-term solution will still be necessary to avoid future energy crises. A bigger emphasis will have to be placed on energy efficiency \u2013 which played only a very small role in this winter\u2019s European energy resilience \u2013 and other forms of clean and alternative energies to fall back on. \u201cPutin\u2019s grip on Europe may look weaker than expected,\u201d the Economist warns, \u201cBut the continent needs long-term solutions to ease its tight energy supply.\u201d The war isn\u2019t over, after all, and neither is the imperative to lessen Europe\u2019s dependence on the Kremlin and on fossil fuels in general.<\/p>\n<p>By Haley Zaremba for Oilprice.com<\/p>\n<p><strong>More Top Reads From Oilprice.com:<\/strong><\/p>\n<ul>\n<li><span><a href=\"http:\/\/oilprice.com\/Geopolitics\/International\/Lula-Seeks-To-Revive-Brazilian-Foreign-Policy-Through-Peace-Diplomacy.html\" target=\"_blank\" rel=\"noopener\"><strong>Lula Seeks To Revive Brazilian Foreign Policy Through Peace Diplomacy<\/strong><\/a><\/span><\/li>\n<li><span><a href=\"http:\/\/oilprice.com\/Geopolitics\/International\/Putins-Digital-Disconnect-A-Leader-Without-A-Smartphone.html\" target=\"_blank\" rel=\"noopener\"><strong>Putin\u2019s Digital Disconnect: A Leader Without A Smartphone<\/strong><\/a><\/span><\/li>\n<li><span><a href=\"http:\/\/oilprice.com\/Energy\/Energy-General\/Possible-Cuts-In-Government-Funding-Could-Affect-Renewables.html\" target=\"_blank\" rel=\"noopener\"><strong>Possible Cuts In Government Funding Could Affect Renewables<\/strong><\/a><\/span><\/li>\n<\/ul>\n<p><\/body><br \/>\n\t\t\t\t\t\t    <\/p>\n<p>\t\t\t\t\t    <\/html><\/div>\n<div>\n<h5>Download The Free Oilprice App Today<\/h5>\n<p><a href=\"https:\/\/itunes.apple.com\/in\/app\/oilprice\/id1389772617?mt=8\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"169\" height=\"50\" src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/a\/img\/cl\/app\/appstoredownload.svg\"><\/a><br \/>\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=oilprice.android.app\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"169\" height=\"50\" src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/a\/img\/cl\/app\/androidbutton.png\" previous-src=\"https:\/\/d1o9e4un86hhpc.cloudfront.net\/a\/img\/cl\/app\/androidbutton.png\"><\/a>\n\t\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p><a href=\"https:\/\/oilprice.com\/\">Back to homepage<\/a><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/avatars\/medium\/50381fcea6141763cced7f0cb1297f7a.jpg\" alt=\"Haley Zaremba\" title=\"Haley Zaremba\"><\/p>\n<div>\n<h3>Haley Zaremba<\/h3>\n<p>\n\t            Haley Zaremba is a writer and journalist based in Mexico City. She has extensive experience writing and editing environmental\u00a0features, travel pieces, local news in the\u2026\t          <\/p>\n<p><a href=\"https:\/\/oilprice.com\/contributors\/Haley-Zaremba\">More Info<\/a><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<h3>Related posts<\/h3>\n<\/p><\/div>\n<p><a href=\"http:\/\/oilprice.com\/#\" id=\"join-discussion\">Leave a comment<\/a><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/The-Economics-Behind-Europes-Energy-Rebound.html\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Lloyd Schroeder<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Haley Zaremba Haley Zaremba is a writer and journalist based in Mexico City. She has extensive experience writing and editing environmental\u00a0features, travel pieces, local news in the\u2026 More Info Premium Content By Haley Zaremba &#8211; Apr 14, 2023, 5:00 PM CDT The European energy market faced a crisis due to the collapse of the energy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":629490,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1846,35551,534],"tags":[],"class_list":{"0":"post-629489","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-behind","8":"category-economics","9":"category-financial"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/629489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=629489"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/629489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/629490"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=629489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=629489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=629489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}