• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day Does Toyota Know Something That We Don’t?
  • 4 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 22 hours World could get rid of Putin and Russia but nobody is bold enough
  • 58 mins America should go after China but it should be done in a wise way.
  • 4 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 3 days China is using Chinese Names of Cities on their Border with Russia.
  • 4 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 3 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 4 days Putin and Xi Bet on the Global South
  • 4 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 5 days United States LNG Exports Reach Third Place
  • 5 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Breaking News:

Chicago Files Suit Against Big Oil

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

The Natural Gas Crisis Is A Much-Needed Reality Check

Gastech, the first major in-person industry event since the pandemic started, couldn’t have happened at a better time to show that despite the push toward renewable energy, natural gas will continue to play a key role in keeping consumers warm and industries operating.  As energy ministers of major gas-producing nations and top executives of the world’s largest gas companies and commodity traders gathered in Dubai for the start of Gastech this week, natural gas prices in Europe continued to surge amid a very tight market. 

Demand is surging ahead of the winter heating season, but gas stocks are at multi-year lows, and supply cannot catch up with demand. Weather in northern Europe in recent weeks has reduced wind power generation, forcing utilities to turn to more gas and even coal - despite the EU’s green ambitions - to keep the lights on and industrial activities running. Consumers are feeling the pinch, and so are industries, some of which are curtailing operations. The gas and power price spikes threaten to knock back the post-COVID recovery in European economies.  

Governments are forced to intervene to help lower-income consumers and smaller power providers, and all political leaders are wary of higher energy costs for consumers (voters).

Norway, Europe’s second-largest gas supplier after Russia, will boost deliveries this winter season, as Equinor was allowed to raise gas exports from the Oseberg and Troll fields. But Russia is not rushing to book additional capacity via Ukraine, leaving the European gas market very tight. 

Related: Oil Rebounds On U.S.-China Call Europe’s push for greener energy sources is the right thing to do, but not by putting the cart before the horse, according to Claudio Descalzi, CEO at Italy’s oil and gas major Eni. 

“You cannot cut supply without also reducing demand,” Descalzi told the Financial Times.  

“This is not something that is for a limited time, it’s structural,” the executive told FT, referring to the gas price spike. 

Investment in supply is needed and will be needed in the future, regardless of calls for no more investment in fossil fuels, according to the world’s top liquefied natural gas (LNG) exporter, Qatar, and to the head of OPEC. 

At the Gastech conference, OPEC Secretary-General Mohammad Barkindo said that even in the energy transition, “predictable investment in the oil and gas sector is required to address increasing global energy needs.” 

The jump in natural gas prices is the market’s reaction to the push toward renewable energy sources, Barkindo told CNBC’s Dan Murphy at Gastech. 

“I have talked about a new premium that is emerging in the energy markets that I term the transition premium,” Barkindo said. 

OPEC’s chief noted that emotions have overtaken facts in the rush to keep fossil fuels in the ground.

“Emotions have overtaken industry facts,” Barkindo said on a panel at Gastech, as carried by Bloomberg

Related: The Top Two Commodities To Watch In The Short Term

“How do we change this narrative, because we’re losing it? Civil society and climate activists have taken over the space. Activist shareholders have held the industry nearly to ransom,” OPEC’s secretary-general added. 

The surging gas prices are partly the result of underinvestment in the industry, also driven by the attempts at fast energy transition, according to Saad al-Kaabi, Qatar’s Energy Minister and CEO of Qatar Petroleum, the world’s top LNG exporter. 


“There’s a euphoria around the energy transition that’s forcing companies not to invest,” al-Kaabi said. 

“There is a huge demand from all our customers, and unfortunately we cannot cater for everybody. Unfortunately, in my view, this is due to the market not investing enough in the industry,” al-Kaabi said on the sidelines of Gastech, as carried by Reuters

As the low wind power generation in Europe has shown this year, renewable energy cannot replace fossil fuels overnight, and investment in natural gas will be necessary for years to come in order to avert the next gas crisis.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Carlos Everett on September 22 2021 said:
    The O&G Industry since 1870 has developed the industrial economy into producing 100 million b/d of oil and 92 trillion CF of Gas. Industry personnel have reportedly told the Financial Industry that this cannot be replaced by green energy in 2030 to lower the temperature to meet their goals.

    The activist shareholders have withheld investment and now what the environmental community and shareholders have done is to raise the bills of the poor or in poverty. If you looked at this from the outside, what you could easily say is the Financial Industry has sold the environmental/activist shareholders a bill of goods and now the Financial industry last March and April bought oil and gas company's stock on the cheap by the Financial Industry's less scrupulous investors, laughing all the way to the bank on the back of the poor. All the stock market wants is to drive prices one way or the other . so there are opportunities to profit.

    You have to laugh at those activist stockholders and it would be funny if it wasn't for the fact that the poor are suffering.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News