Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Energy “Crisis Curve” is Accelerating in a Dangerous Part of the World

Politics / Energy Resources Apr 04, 2014 - 07:21 AM GMT

By: Money_Morning


Dr. Kent Moors writes: Sitting in a new land of plenty, Americans rarely notice disturbing energy trends elsewhere in the world.

But in the course of my global work, it’s impossible not to recognize there are serious energy shortages developing in other parts of the world.

In fact, I’m beginning to see worrisome indications this “crisis curve” is now accelerating.

Oddly enough, the latest danger signals are coming in from parts of the world normally thought of as net energy producers: The Middle East, North Africa and Central Asia.

Now, there are new concerns that this brewing energy crisis may well be the next serious step in an ongoing “Arab Spring.”

And while countries like Saudi Arabia, Kuwait, and the United Arab Emirates have largely been untouched by this sweeping regional political unrest, elsewhere matters are getting worse.

Suddenly, energy has become a bigger trigger point in a highly volatile part of the world…

A Fast Growing Electricity Crisis

Over the past week, new warnings have emerged in Egypt, Yemen, and Pakistan that the situation is deteriorating.

In Egypt and Yemen, the crisis is a direct result of political strife. Both countries are facing a massive collapse in electricity availability because of the unrest.

Egyptian energy officials are now publically stating the country could face a grid shutdown in the next few months, an effect of a systemic breakdown in both the generation and distribution components. In fact, even as Cairo seriously looks at massive imports of coal to arrest a fuel supply shortage, there are increasing questions about the ability of the infrastructure to even support it.

Meanwhile, in Yemen, the problem is a direct result of opposition attacks on the electricity generation facilities themselves.

As for Pakistan, they have been in dire straits for some time, as we have discussed here previously. The country has suffered through increasingly frequent blackouts and the inability to provide industries regular power for more than a few hours each day.

That has a direct, and very negative effect, on production, employment and overall economic conditions.

The Pakistani government in Islamabad had put their hopes on a combination of natural gas imports – pipelines from Iran and Turkmenistan, along with liquefied natural gas (LNG) coming to proposed new onshore and offshore terminals.

But the LNG possibilities are facing significant investment difficulties along with a time delay for implementation that the country may not be able to weather. Then there is the added uncertainty of sourcing a regular supply of gas as the feeder stock for the LNG.

Recently, there have been some indications it may come from Iraq, where the rise in oil production has resulted in a surfeit of associated gas that needs to find a market. Separate production in the autonomous region of Kurdistan in the Iraqi north is another possibility.

Both, however, require their own pipeline systems – almost certainly running through Turkey – to move out the gas. What’s more, there is also the question of where the LNG would be liquefied for the tanker traffic to any receiving terminal the Pakistanis come up with.

The primary conventional natural gas pipelines also have significant roadblocks and have experienced inordinate delays. The Iranian venture is now dead until such time as Western sanctions against Tehran are eased.

The Turkmen venture is supported by Washington. Yet it is also dependent on the participation of an avowed enemy.


In this case, the proposed pipeline would cross both Pakistan and Afghanistan. Yet the demand in both of these markets together is too small to justify the project. So the pipeline won’t be built unless it can reach just inside the border of India. This is the reason why the pipeline is known as the TAPI (Turkmenistan-Afghanistan-Pakistan-India). No India, no TAPI.

Gaming the Energy Chessboard

Of course, India has a huge energy shortage crisis of its own, one that has already cut into its economic performance and threatens to have a multiplier effect throughout the country. And while it has numerous domestic drilling efforts in the planning stages, including some huge proposed projects offshore in the Bay of Bengal, these will not be nearly enough.

The Indian economy has been hit hard on the energy front from two directions.

The first has been the sanctions against Iran. Aside from China, India has been the largest market for Iranian crude. In fact, Indian refineries are largely designed to operate on Iranian grade oil.

But the collapse in international currency exchange to pay for the imports (a direct result of the global banking sanctions) added to the rising price and made matters very difficult for New Delhi.

The second factor is perhaps the most obvious. India’s population has for some time exceeded the country’s ability to support it with any system of reliable energy. That population continues to grow.

As a result, India has been negotiating with Pakistan for pass through access to the Turkmen gas. That would allow both nations access to essential energy, while Pakistan would also receive revenue from transit fees on the gas going over the border.

Nonetheless, negotiations have been excruciatingly slow. The process has hardly been helped by radical groups in both countries who are set against any cooperation at all.

Then there is the problem that TAPI has to move through areas controlled by radical groups in both Afghanistan and Pakistan. Neither central government can provide security in these regions nor has anybody come up with a genuine idea of who could provide the necessary protection.

So once again, energy becomes the chessboard upon which geopolitics is played out.

But you should note this very carefully: Energy prices are determined by the worldwide play of supply and demand. That means energy problems abroad will come back to effect even the most oil and gas endowed of nations

Like us.

Source :

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in