How Egypt could bring on the energy crunch
“Tunisia, Jordan and Egypt’s, unrest continue to grow. It is scenes from Egypt this week, that has culminated in the running battles in many cities that have highlighted the volatility of the situation and the vulnerability of the western world with its Suez Canal oil route.”
That such vulnerability exists at all of course is largely of our own making. We have long observed a double standard in our approach to the Arab countries. We have turned a blind eye on many issues, as long as the appearances of internal stability in these countries were preserved and the oil routes remained secure.
If as in Iran in the 1970s popular anger at pro-western regime was called foul and shunned, we could see one of our main oil routes blocked by any extreme regime change occurring as a result of the current unrest.
Egypt is a crucial ally in the region as a guardian of the Suez Canal which we in the west need to be stable and orderly. Currently democracy and stability seem to be more fragile and at the mercy now of anti-western extremist groups.
Stuart Lovatt from Heat my Home adds, For the Arab countries, these are complicated and even revolutionary times. As it is, the West has little choice but to wait and see how this might affect the distribution of oil globally and ultimately how this may affect our oil dependent lifestyles.
With energy bills currently averaging at £1,250 annually, any kind of global change, which might increase this figure further, will put millions into fuel poverty and many others with unimaginable energy bills.
This comes at a time after the latest round of energy price rises will heap yet more fuel onto the fire of uncertainty. Confidence in energy pricing will only get worse as the overall energy picture, gets more blurred and energy suppliers begin to price their stocks accordingly.
"Feel the pride."Stuart Lovatt January 31, 2011
Founder of Heat My Home.