Will the energy crisis ruin Christmas?

Coffee House Shots

The Spectator

News, Politics, Government, Daily News

4.4 • 2.1K Ratings

🗓️ 16 October 2021

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

As the temperature starts to fall, the question for the global economy is: how long will energy prices remain high? Industrial production has already started to feel the energy-related price pressures. Many more suppliers are unlikely to make it through the winter. But with the governement divided over bailing out businesses, who should be absorbing all of the costs?

James Forsyth is joined by Fraser Nelson and Javier Blas, chief energy correspondent at Bloomberg News as they discuss how this is just the beginning of the energy crisis.

Transcript

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0:00.0	This podcast is sponsored by Canacord Genuity Wealth Management, award-winning wealth managers who go above and beyond to support and guide you.
0:09.2	Visit can-dowealth.com to start building your wealth with confidence.
0:16.2	Hello and welcome to a special Saturday edition of Coffee House Shots.
0:22.0	I'm James Seif,
0:26.7	and I'm joined by Javier Blas, the chief energy reporter at Bloomberg News and the co-oper of the world for sale, and Fraser Nelson, the editor of a spectator.
0:30.5	Javier, if I could start with you, how long do you think energy prices are going to remain
0:36.3	elevated? We are going to see high energy prices are going to remain elevated?
0:43.9	We are going to see high energy prices and particularly high gas and electricity prices probably through the whole winter and into the spring.
0:48.0	This is not a short-term spike on prices.
0:50.9	We are here for a crisis that is going to be with us, potentially until February. It will be
0:57.3	then when we will know that we have made it through most of the winter with enough gas,
1:03.9	when prices, if the winter has been mild, when prices could come down. If the winter has been a harsh one, it has been called,
1:13.0	it will take a few more months of high prices to things to really count down. And what's your
1:19.0	sense on how much industrial production is going to end up effectively shutting down, either because
1:24.3	it becomes uneconomic at these prices, or because in a more dramatic scenario,
1:30.2	government essentially tells factories to shut to ensure that there's enough energy left
1:33.9	for household heating. Hopefully it's going to be mostly the first reason that is going to be
1:39.3	uneconomical because prices are high enough to bring a demand reaction.
1:44.8	We are seen already quite a significant amount of big industrial consumers having to shut down or reduce production.
1:51.3	Those are very energy intensive ones.
1:53.7	We are beginning to see also substitution of electricity for oil, like, for example, on freight, on railways, where some freighters are
2:03.3	putting their locomotives, the electric locomotives back into storage and using the old-fashioned
	...

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