Eugene Van Den Berg Oct, 2021
The current energy crisis playing out in large parts of the world is driven chiefly by the onset of a commodity supercycle that commenced in April 2020, combined with massive under investment in oil and gas since 2015. Such under investment causes demand for oil and energy commodities to exceed supply.
From the above article, The National Post writes:
“The inevitable collision between 30 years of global warming hyper activism — the howling demonization of available, proven energy resources — and reality, is upon us. There is an atmosphere of semi-panic as many of the countries most committed to “getting off” oil and gas and turning their economies over to wind and sun find winter approaching and they, environmentally virtuous as they are, are wondering if they have enough oil and gas and even coal to get through it.”
Commodities in turn drive the demand for oil. Vast amounts of oil is needed to drive the machinery and industrial equipment used to process such commodities. This cycle compounds increases in inflation.