How Europe Triggered An Energy Crisis, And Now Is Paying Dearly For It

How Europe Triggered An Energy Crisis, And Now Is Paying Dearly For It

Murphy's law states, "Whatever can go wrong, will go wrong." A theatrical adage takes another view, "It will be alright on the night." Europe has taken the second adage as its natural gas supply position, and it isn't going well. European countries bet that natural gas spot prices would be low and that they could pick and choose and contain any commercial bad manners from supplier Russia with their combined market power. In short, "alright on the night." But Murphy's law has prevailed. Now Europe, from the Mediterranean Sea to the Arctic Circle, is wondering how it could all have gone so wrong so quickly and why European countries are facing the highest prices for gas and electricity in history, leading to economic damage, and possible blackouts and frozen homes and businesses this winter. The temptation is to blame Russia for manipulating or, as some say, weaponizing the supply of gas to Europe. But didn't Europe know what would happen? Russia isn't known as a benevolent nation. If Russia is to blame — which prima facie appears to be the case, as Europe gets fully half its natural gas from Russia — then the Europeans are to blame too. The