Europe on a Verge to Face Energy Crisis
Europe's gas storage levels have been depleting at a faster pace over the years. In the last eight years, European gas storage has experienced a stunt decrease. The survey reports for 2024 show that the European region is experiencing depleting levels of gas storage due to several reasons. Research shows that the approaching winter of 2024 is the main driving factor behind reduced levels of European gas storage. Further, Europe's colder temperatures and reduced wind speeds are the essential factors behind the depletion of Europe's gas storage levels in 2024.
Reducing gas storage levels in Europe can lead to several other issues. Industries fear it can lead to gas shortages and increasing prices during the peak winter months in 2024. The reduction of gas storage levels may continue into 2025, too. Moreover, the European region may face significant gas shortages as Russia plans for more supply cuts. Due to Russia's strict supply cuts on gas importation, the European region has faced severe problems in the last two years. Therefore, Europe aims for stored gas to be completed by 50 percent by the first week of February 2025.
According to a survey of 2024, there is a 45 percent hike in gas prices in 2024. This is due to growing geopolitical tensions around the world. However, the recent hike in gas prices is still below the gas price surge in 2022. Researchers highlight that a surge in gas prices may lead to several issues at the end of 2024 and the beginning of 2025. It may cause a high cost-of-living crisis for the European households. Therefore, European regions plan to decrease Europe's dependency on Russia for oil and gas. Further, it aims at increasing connections and reliability with other sources to import gas. Lastly, Europe will seek to improve its gas production in the coming years.
