Natural gas prices have risen worldwide global demand increased throughout the COVID-19 economic recovery.
The supply of natural gas, on the other hand, was hindered by limited US production and rare weather events.
The result of the increased demand and tight supply has led to many nations scrambling to meet their domestic demand.
In 2013, the UK government also decided not to subsidize loss-making gas-storage facilities, failing to grasp the national security aspect of sufficient energy reserves.
In 2017, a major UK natural gas storage facility shut down. The country can now only hold reserves of one week’s worth of natural gas, a measly amount compared to countries like Germany with the capacity to hold a 3-month reserve.
As left-wing politicians favoured the “energy transition” and became increasingly reliable on wind energy, the country became highly reliant on natural gas importation when turbines could not meet the energy demand.
In 2020, the UK relied on wind turbines for 24% of total power generation. That year, wind energy only accounted for 2% of the power generation, leaving the country scrambling for natural gas imports.
While the UK’s gas storage is over 90% full, its total storage capacity remains very limited. With predictions of a harsh winter and limited supply due to energy-averse policy around the world, the country could see its reserves deplete rapidly, with no backup plan.