The fact that these are not insignificant places is evidenced by the fact that both branches of Chevron in Australia contribute more than five percent to global LNG supplies. Bloomberg reported that gas prices rose more than 10 percent just hours after the strike began, as Europe is said to be vulnerable to a similar event due to last year’s energy crisis. And as it usually happens in these matters, the development of the price of gas on the stock exchanges is not supported (regardless of the substance) by the development of the price of oil. Analysts expect the trend of higher prices per barrel of oil to last until the end of this year.
The International Energy Agency EIA predicts that Brent crude will average $86/barrel in the second half of 2023, which is about $7/barrel higher than the previous short-term oil forecast for the same period. To be clear, I’m not just writing about the EIA, because its forecast for the price of gas until the end of 2023 does not count for any dramatic increase in the price even because of the strikes.
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The only thing that follows from that. The economy and price development have their “standard” processes, mechanisms and times during which key economic indicators and parameters change. Fortunately, this general statement holds true. For example, according to a recently published report on iRozhlas.cz, another energy crisis awaits us. And intensive search for cost-saving solutions and sustainable housing can be a significant (self) help to prevent large price fluctuations. According to this report, for example, the concept of an energy community, which will allow energy to be shared between small producers.
But back to natural gas. The EIA’s full-year 2023 natural gas price prediction says: “U.S. spot natural gas prices will reach $3.71/MMBtu (unit of measurement) in December 2023, up from slightly more than $2.91/MMBtu for the year , which is more than a 50% decline from the average price of $6.42/MMBtu in 2022.” And natural gas price predictions for the next 5 years and beyond: Rating agencies continue to expect price moderation due to lower economic growth, which will reduce gas demand in the short term, while easing geopolitical pressures in the longer term will lead to further price declines.
So, dear Chevron workers (and surely others), feel free to strike for higher wages and better working conditions, we are not afraid of a (long-term) price increase because of it. And this despite the fact that, according to Czech publicly available information sources, according to the calculation of the domestic Research Institute of Labor and Social Affairs, the average Czech household paid 62 percent more for energy this June than two years ago. The rise in prices was initially due to the bankruptcy of the Bohemia Energy company and then the war in Ukraine.
And if you think that talking about energy savings in this context, as can be read from the unspoken words among the nonsense of certain political circles, is not appropriate at all, it is. And not only because of climate protection. But the regularly published data on energy savings in the Czech Republic show that instead of looking for the right source that predicts the next correct price of an energy commodity, it is better to think about how I am able to save energy and what I can do myself so that I do not have to pay high bills for them. It’s worth it.
Source: eurozpravy.cz
