The crisis in the European energy market and in other regions of the world is caused not so much by geopolitics as by an unexpected recovery in demand and redistribution of the market, Secretary-General of the World Energy Council (WEC) Angela Wilkinson opines, Report informs, citing RIA Novosti.
“This is not a geopolitical crisis; it is a combination of other factors. What is happening in Europe, or China, or Oceania, or Latin America, or North America, is a combination of surprise in the form of a return in demand. Asia has greatly increased the demand for gas. This takes the market away from Europe,” she said.
She added that gas suppliers from all over the world rushed to Asia in search of higher prices.
“This is what happens when you rely on the market. Eighty percent of gas supply contracts are covered by long-term contracts. All of them are fulfilled, but among other things we are experiencing more extreme weather conditions, we are more vulnerable to them, our systems need to be changed,” Wilkinson added.
In addition, she noted that the current situation is not similar to the energy crises of the past.
