Grayling Blog

Time to defuse the energy timebomb

Posted on 15.02.2011 by Russell Patten

Like buying a house where “location” is critical, in today’s Europe, “Energy” should be the No1. priority to secure our future! Demand for gas in the European Union (EU) is expected to increase by 20% in 2030, yet EU production will decrease by 50% during the same period. In short, Europe is sitting on an energy time bomb.

For several years now the energy issue has been bubbling under the surface. When you speak informally to Brussels-based decision-makers over a good dinner and a glass of claret, it becomes abundantly clear that Europe’s dependence on Russian energy sources is at the forefront of people’s minds. The issue is thwarted with problems, and tensions are actually running very high, but to date our European leaders have managed to keep it simmering below the surface.

Last week’s European Summit, which was to focus on energy, was hijacked by other supposedly more pressing issues such as the problems in North Africa. However, here lies the irony, as Egypt in particular (home of the Suez Canal which is used to transport large supplies of energy to Europe) is a critical energy bridge between Europe and future oil and gas reserves.

We can, therefore, only hope that the EU’s Energy Council of Ministers meeting at the end of this month will take a bolder step in securing Europe’s future energy supplies, not necessarily away form Russia, but develop energy diversification to other parts of the world. This will help the countries in, for example, the Caspian Sea regions, which are desperate for foreign currency to develop their nations, as well as provide Europe with a reliable and diverse energy supply.

The energy time bomb would finally be defused!