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Energy Prices Skyrocketed This Month, Petroleum Could Be Next

Experts are ready to hit the panic button as the global energy crisis appears ready to bear its wrath on petroleum prices. Worldwide economic instability combined with unforeseen natural disasters is putting a strain on the global energy system in ways unseen in a decade.
Gas Crisis 6 photos
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Signs of trouble first appeared earlier this month, as Hurricane Ida took a toll on oil and natural gas refining plants in and near the Gulf of Mexico, leading to a cumulative deficit of over 30 million barrels as a result of the storm. Further instability came from a recent effort by the Chinese to transition its energy grid from coal to natural gas.

With petrochemicals across the spectrum skyrocketing in price, experts warn the next target is likely gasoline. More evidence of a coming crisis at the gas pumps comes in a report that crude oil prices had risen to above $80 a barrel for the first time in over three years. A stark contrast from the record lows it saw just a year ago.

A global economy can be both a blessing and a cure to the auto industry. Sometimes, it helps car companies grow. Other times, it brings unforeseen consequences that leave them reeling. It would appear the latest spike in natural gas prices spell trouble for people filling up at the pump.

Global efforts towards a renewable energy system both for cars and also homes and businesses appear to have done little to cure worldwide dependence on foreign oil. It would appear that electric vehicle technology has come a little too late to stave off the latest wave of scarcity.

As governments across the globe scramble to find a reasonable solution to the energy crisis, the auto industry is hard at work providing renewable alternatives to fossil fuels, primarily in the form of battery-electric drives and hydrogen fuel cells. If world leaders can’t get their act together, it will be up to them to forge the plan ahead.

 
 
 
 
 

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