Energy shock within 10 years?

The UK’s Energy Secretary said recently in the Financial Times that the UK is “very likely” to experience an oil shock similar to the crises of the 1970s in the next decade.

In Ireland, a report published last week warned that the country’s GDP could fall “by as much as 7.5% if the world were to experience a sudden oil or gas price rise.” It notes that Ireland is more vulnerable to such a shock than the US, UK or the rest of Europe.

In the EU, the average dependency on foreign energy supplies is about 53.8%. However, in some countries, this rises to as much as 100% (Cyprus and Malta) and it’s in the 90% bracket for Luxembourg and Ireland.