The energy market has been upside down since the beginning of Russia’s war of aggression against Ukraine in February 2022 and the associated sanctions imposed by the West on the Kremlin. The EU oil embargo not only stopped Russian crude oil deliveries, gas exports through the Nord Stream 1 Baltic Sea pipeline to Germany also decreased more and more before deliveries from the Russian side were stopped entirely. As a result, not only did the prices for oil and gas rise, but energy prices have generally been at a high level since then – to the detriment of consumers. So while electricity customers now have to expect additional spending, the most recent events have also had an impact on the share prices of commodity companies.
The following commodities and stocks have moved particularly strongly in an environment of increased energy costs.
The effects of the war in Ukraine on the global energy market can now also be felt in Germany. Not only have petrol prices increased significantly in recent months, but energy suppliers have already increased their tariffs for companies and private individuals, so that the costs for gas and electricity have increased significantly.
No more gas deliveries from Russia – uncertainties in the gas supply
In addition, only a fraction of the gas quantities ordered were channeled to Germany in the previous weeks, and the Russian gas company GAZPROM completely stopped deliveries via the Baltic Sea pipeline Nord Stream 1 at the end of August 2022 – first under the pretext of maintenance work, then Russian President Vladimir Putin said that deliveries will not resume until sanctions against the country are lifted. In the meantime, the German government is working flat out on alternative sources of supply for gas, for example with the expansion of the network of LNG terminals, which should enable the import of liquid gas, but it will probably take some time before they can be put into operation.
But Germany is already receiving natural gas via pipelines from Norway, the Netherlands and Belgium after Russia turned off the tap.
Saving electricity in the household
Due to higher gas and electricity prices, consumers now have to use expensive resources sparingly. The biggest power guzzlers in the household include electrical appliances such as large televisions, but also household helpers such as washing machines, dryers, dishwashers, refrigerators and freezers. However, such devices often offer an eco mode, which is characterized by lower consumption. It can also be worth paying attention to the energy efficiency class when buying a new one. Switching to a more economical model can pay off, especially for devices such as refrigerators that have to be in constant operation. However, if this is not necessary, the often unnoticed power consumption of energy-intensive devices can also be curbed with switchable socket strips. With these funds, a large proportion of the annual electricity consumption can already be saved.
A change of electricity or gas provider should currently be worthwhile in very few cases, as the “consumer center” warned. Due to high energy costs, tariffs for new customers from numerous providers are currently more expensive than those for existing customers. However, if the existing provider has announced a price increase, consumers can still check the offers of competitors. According to the portal, however, substantial savings are not to be expected.
Fan heaters are not a suitable alternative to gas heating
Geothermal heat pumps, pellet heating and district heating are currently popular alternatives to gas heating. According to energy expert Reinhard Loch from the North Rhine-Westphalia consumer center, keeping the apartment warm with fan heaters is not a good idea, as he explained to the “RedaktionsNetzwerk Deutschland”. The power consumption of the mobile warmers is simply too high for that. “You would double your heating costs if you suddenly started heating with electricity permanently,” says the expert. In addition, there is a risk that the power grid will collapse if a large part of the population switches to electric heating.
Energy transition more necessary than ever
The gas shortage and efforts to become independent of Russia’s supplies also show the need to expand renewable energies. Although the environmentally friendly alternatives to fossil energy sources, including solar, wind and hydropower, already make up more than half of the electricity mix in some regions, dark lulls are problematic, i.e. when the sun is not shining and there is hardly any wind. Then more electricity from coal, nuclear power and gas plants will be fed into the grid again.
By 2030, the federal government wants to reduce all nationwide CO2 emissions by 65 percent compared to 1990, and by 2045 Germany wants to be climate-neutral. To this end, the share of green energies in gross electricity consumption should be at least 80 percent by 2030. Wind turbines and photovoltaic systems are likely to increasingly shape the landscape in the coming years.
On this overview page you can see the consequences of the war in Ukraine and the associated energy crisis for commodity prices and the shares of commodity companies.
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