MATHS SHOWS THAT IF 20% OF THE WORLD ENERGY GOES OFF LINE FOR 3 MONTHS THAT RESULTS IN 5 % LESS GLOBAL ECONOMIC PRODUCTION IN 3 MONTHS,
IF IT GOES OFFLINE FOR 6 MONTHS, IT RESULTS IN 10% LESS GLOBAL ECONOMIC PRODUCTION
IF IT GOES OFFLINE FOR A YEAR, IT RESULTS IN 20% LESS ECONOMIC PRODUCTION ACROSS THE GLOBE
IN PRACTICE, RUSSIA CAN SUPPLY CHINA WITH OIL AND GAS, SO THE CRUSHING REDUCTON IN ECONOMIC ACTIVITY WITH BE CENTERED ON THE UK, US AND EUROPE
WILL THE WEST SEE A 20, 30 OR EVEN 50% REDUCTION IN ECONOMIC ACTIVITY?
THE LONGER TEE OIL AND GAS FLOWING FROM THE MIDDLE EAST GOES MISSING, THE WORSE IT WILL BE WITH FORCE MULITILPIERS IN INFLATION, INTEREST RATES
AL L THIS AGAINST THE BACKGROP OF A COLLAPSING DOLLAR, END OF THE PETRO DOLLAR AND FINANCIAL IMPLSION IN THE WESTERN MARKETS
US, UK AND ISRAEL COULD BE FLATTENED AS THE US, IDF RUN OUT OF AIR DEFENCE MISSILES, MUST CANNABALIZE ASIAN PACIFIC COMMAND TO GET THE LAST 800 MISSILES, EXPECTED TO LAST JUST ONE MORE WEEK AGAINST IRAN
https://www.msn.com/en-in/news/world/iran-launches-19th-wave-of-strikes-on-israel-blasts-heard-in-tehran/ar-AA1XyJw8?gemSnapshotKey=GMD2E28A51-snapshot-0&uxmode=ruby
Britain has just two days of gas stored up, raising fears of a potential crisis as supplies from the Middle East dry up, reports The Telegraph.
The UK government is already having to pay sky high prices for the gas that still is avaliable on the markets.
Sky high gas prices will feed inflation, send interest soaring and potentially even lead to the collapse of the energy grid and economy.
As waves after wave of farms and businesses go bankrupt, there could be mass starvation in the UK stoon as well as in Europe.
JP Morgan has quantified the energy shock as 17 times worse for the economy as the April 2022 energy shock after the Ukraine war started.
However, the economic devastation may be far more bleak.
It may be unquantifiable
We are talking not about one form of energy needed just in one region, like Europe, which could look for new energy suppliers such as the expensive US LNG,.
We are talking about the oil and gas underpinnng the entire global economy flowing out of the Middle East stopping, refineries on fire across the Golf States and in Iran. That means, there will be no quick restoration of oil flows even if war stops tomorrow.
Israel s only big oil refinery at Haifa was also hit again last night, according to reports.
https://timesofindia.indiatimes.com/videos/international/israeli-oil-refinery-in-flames-as-iran-fires-12-missiles-bomb-shelters-full-amid-panic-chaos/videoshow/129251539.cms
While China has reserves of about 250 days and can turn to Russia for more oil and gas, the UK, Europe an only turn to the collapsing USA.
We can do a back of the envelope maths calculation and firgure out that if 20% of the world s energy needs suddenly fall out, then that feeds into 20% less economic activity for that period of time.
If the energy is missing for 3 months that is roughly 25% of 20% of the global GDP missing, which equals 5% of the global GDP gone just there.
Since most of that loss will be in the West which cannot find energy alternatives, that may equal 10 to 20% of the Western economies good right there in 3 months.
Thee knock on effects of energy spikes, inflation, higher interest rates lasting 12 months could take out another 20% or more of Western economies.
From
The UK’s gas reserves have shrunk from 18,000 GWh worth last year to 6,700 GWh – enough for just 1.5 days of demand, according to new data published by transmission operator National Gas.
A similar amount is stored in tanks as liquefied natural gas. Europe, by contrast, has built up reserves of several weeks-worth of gas.
The crunch in supplies has resulted in traders charging the UK a premium for gas, exploiting its need to outbid rivals in other countries. It means the UK is now paying the highest wholesale gas prices in Europe.
Meanwhile, Goldman Sachs released a note on Friday evening warning that the size of the Middle East oil supply shock was “17 times larger than the peak April 2022 hit to Russia production”, following the invasion of Ukraine.
“We now think that oil prices would likely exceed $100 next week if no signs of solutions emerge by then,” the bank said.
“We now also think it’s likely that oil prices, especially for refined products, would exceed the 2008 and 2022 peaks, if Strait of Hormuz flows were to remain depressed throughout March.”
https://www.telegraph.co.uk/business/2026/03/08/britain-two-days-gas-middle-east-flow-runs-dry/
No comments:
Post a Comment