heatwave over uk and europe - oh some movies with coolness oh that feels so much better

[Andysu]

lousy british weather heat

 

[Vacceo]

18 tropical nights in a row over here. Stay well guys.

 

[LSPhil]

I agree that privatisation of utilities was a bad idea. However, none of that explains what is happening now. The current situation is a textbook economics case, and so are the possible measures in the toolbox, although the choice between them is political rather than economic. The story goes like this:
Russia cuts energy supplies to Europe. This raises prises a lot, because the price elasticity of demand for energy is low, and certainly in the short run. For the same reason, Russia also receives more for less gas.

It’s true that Russia cutting energy supplies raised prices sharply due to low short-term elasticity of demand. But we should not forget that the Nord Stream 2 pipeline was deliberately blown up, and officially no one knows who was behind it. With this supply route destroyed, Europe became more dependent on LNG imports, including from the U.S., which are much more expensive due to transport and liquefaction costs. This has clearly benefited American suppliers, who can now sell gas to Europe at higher prices.

 

[Willem]

It’s true that Russia cutting energy supplies raised prices sharply due to low short-term elasticity of demand. But we should not forget that the Nord Stream 2 pipeline was deliberately blown up, and officially no one knows who was behind it. With this supply route destroyed, Europe became more dependent on LNG imports, including from the U.S., which are much more expensive due to transport and liquefaction costs. This has clearly benefited American suppliers, who can now sell gas to Europe at higher prices.

However, Northstream 2 was never operational, so its destruction did not have any immediate effect on prices. But yes, LNG has benefited US and other suppliers. European countries have responded in part by reducing energy consumption by, e.g., home insulation and heatpumps, and by transitioning to renewable sources like wind and solar. This makes economic sense, and reduces CO2 emissions. For quite a while now prices are much lower than they were in the aftermath of the Russian invasion.
In our own case, we already had solar panels, and improved the insulation of our large detached house to the so called A++ level, together with a full electric heat pump and an induction cooker. We no longer use any natural gas, and our annual electricity consumption, including that for heating, is about 5500 kWh at about 0.25 euro per kWh (plus connection charges). So we have become largely independent from fluctuations in energy prices. When our old ICE car dies, we will get an EV, if only to benefit from the surplus in the Summer from our solar panels.
As for heat waves, we just had the second one of this Summer. Until recently we almost never had two heatwaves in one year, but this has become much more common in recent years. We still happily manage without airconditioning (max measured indoor temperature 25C), but in future we may have to get some blinds to keep the sun out a bit more.

 

[Andysu]

now say rain possible tues , it better rain animals birds need water , there not been many birds around here for a week or two there elsewhere looking for water

 

[LSPhil]

However, Northstream 2 was never operational, so its destruction did not have any immediate effect on prices. But yes, LNG has benefited US and other suppliers. European countries have responded in part by reducing energy consumption by, e.g., home insulation and heatpumps, and by transitioning to renewable sources like wind and solar. This makes economic sense, and reduces CO2 emissions. For quite a while now prices are much lower than they were in the aftermath of the Russian invasion.
In our own case, we already had solar panels, and improved the insulation of our large detached house to the so called A++ level, together with a full electric heat pump and an induction cooker. We no longer use any natural gas, and our annual electricity consumption, including that for heating, is about 5500 kWh at about 0.25 euro per kWh (plus connection charges). So we have become largely independent from fluctuations in energy prices. When our old ICE car dies, we will get an EV, if only to benefit from the surplus in the Summer from our solar panels.
As for heat waves, we just had the second one of this Summer. Until recently we almost never had two heatwaves in one year, but this has become much more common in recent years. We still happily manage without airconditioning (max measured indoor temperature 25C), but in future we may have to get some blinds to keep the sun out a bit more.

So why did you blow up that Nord Stream Two, when it wasn’t even in use? Why? To show off your strength? To prove who’s really in charge?
Instead of solving problems, you flex your muscles – and it’s ordinary people who end up paying the price.
Meanwhile, countless businesses in Germany are going under, and we’re getting poorer. What, did it get too warm for you, and now you also have to mind our energy balance?
Wages have fallen, purchasing power is shrinking, and inflation is eating away our savings. Who has really benefited from all this?
Our salaries are now 20% lower, while prices feel as if they’ve gone up by 50%. A brilliant balance, isn’t it?
Thank you for this so-called energy freedom, which costs us more and more.
Bravo, America – thank you for forcing us to save.
The irony of it all: instead of investing in the future by choice, we’re doing it out of sheer necessity. And you’re counting the profits.

 

[Willem]

I cannot quite figure out what you are saying here. It was Russia that terminated natural gas supply before Europe stopped buying it. I am Dutch and until recently my country was a major supplier of natural gas to Germany, until we had to stop pumping any gas because of induced earthquakes. The European economy continues to grow, although at a slow pace because the Germany economy is not doing very well. Other EU countries do rather well, however. German salaries are not 20% lower, however, nor are prices 50% up (it is 2% in Germany, and 2,9% in the Netherlands). Wages in the Netherlands are going up, because there is a real labour shortage in our booming economy. Still, we have to deal with the same energy prices as Germany. As for gas imports, the largest proportion is from Norway. The US wants Europe to import more LNG from the US, but that is unlikely to be competitive with wind and solar, so unlikely to happen in this free market, and certainly not in the longer run with declining energy consumption and a growing supply of cheap sustainable energy. Germany has economic problems, but by and large they are German problems.

 

[LSPhil]

in the Netherlands truly is the beacon of economic brilliance, perhaps it’s time to share that dazzling formula with your neighbours. I’m sure BASF and Volkswagen would be thrilled to benefit from such effortless prosperity. And while we’re at it, why not bring in even more labour from abroad to help manufacture… what exactly? Weapons for the next war? Splendid.

But let’s not pretend that Germany’s challenges exist in a vacuum. When one member of the Union stumbles, the rest feel the tremor. Dismissing these issues as 'German problems' seems a touch simplistic, don’t you think?
Perhaps a bit more cooperation and a bit less condescension would serve us all better. After all, Europe moves forward when its nations pull together, not when they stand back and point fingers.