In recent months, the global price of oil and gas has been on the rise. As countries looked to leap out of the economic lull caused by the Covid-19 pandemic at the end of 2021, the demand for fossil fuels returned, driving up the price of oil and gas as countries all over the world searched for a regular supply.
Adding to that, the war in Ukraine instigated by one of the world’s biggest suppliers of gas and oil has led to boycotts of fossil fuels produced in Russia. However, countries are realising just how reliant they have been on fossil fuels from Russia and are now scrabbling to find suppliers elsewhere, including from countries with extremely poor human rights records like Saudi Arabia and the UAE. Even countries that have no reliance on Russian oil and gas are feeling the pain of the global rise in fossil fuel prices as companies like BP, Shell and Exxon drive up the prices of a less competitive market.
There had been calls from all over the world to make the Covid-19 a ‘green recovery’ — our fossil fuel usage had plummeted, the skies were clearer and we’d never have a better chance to commit to prioritising renewable energy. Here in the UK, those calls sound a lot quieter, fading to almost nothing as the calls for fracking on these shores seem to, worryingly, be getting louder and louder.
As the UK scrambles to reduce its reliance on Russian fossil fuels, how are the UK government responding and helping those who will be most affected by the rising costs?
The Rising Oil and Gas Prices
The cost of oil and gas has skyrocketed recently as the demand around the globe soars, despite the many promises of a ‘green recovery’ by governments around the world. The rise of both fossil fuels started in back in September/October of last year, peaking in November. Prices did fall and had been on the rise again due to Russia’s invasion of Ukraine, but intervention has since seen a drop in the price.
The IEA monitors the flow of fossil fuels onto the market, managing the value of fossil fuels and avoiding major price increases that we are currently seeing when supplies of fossil fuels are limited, or a price crash if its too widely available. In response to recent rises, more oil and gas has been released from storage, helping contribute to the drop in prices. The peace talks currently going on between Russia and Ukraine, for example, are also contributing to the fall in price and an eventual peace…