Europe's worst energy crisis coming our way
International jet fuel crisis and how impact may be felt in Bay Area
The International Energy Agency issued a stark warning about how the war in Iran is impacting the global supply of gas and oil. They say Europe only has six weeks of jet fuel left.
SAN FRANCISCO - The International Energy Agency delivered this ominous message: in six weeks, Europe will be out of jet fuel. San Francisco Airport, which has many flights to and from Europe that could be reduced or outright canceled. This politically driven economic disease is sure to spread worldwide.
International jet fuel crisis
"In Europe, we have maybe six weeks or so of jet fuel left. What is happening now is the largest energy crisis we have ever faced in history," said Fatih Birol, Executive Director of the International Energy Agency.
Professor Severin Borenstein a preeminent energy and airline economist at UC Berkeley Haas Energy Institute, minces no words since crude oil is just one of several critical petroleum products that pass through the Strait of Hormuz.
"A lot of the jet fuel is produced at the new, massive refineries in the Middle East, and they're not able to get product out. That typically goes to Western Europe and so Western Europe is seeing the biggest shortage," said Professor Borenstein.
Worldwide, 10 airlines have already raised prices, cut service, downsized their fleets, or eliminated many routes altogether. For Europe and really, the rest of the world, this is as serious as it gets because once they go through the last of the crude oil and the reserves that they have to make more, the problem is, after that, they're out, out of fuel. And that means the airlines are essentially out of business.
"If we see the war go on as long as it's already gone on, without the Strait of Hormuz being opened up. At that point, we're gonna start to see many airlines filing for bankruptcy, grounding the majority of their flights and a real disruption in the industry," said Borenstein.
Unaffordable tickets
This could make ticket prices unaffordable everywhere on earth.
"If this continues, jet fuel prices are gonna go even higher and we will see a smaller and smaller industry, which is what you would expect," said the Borenstein.
That is power that dictators and autocrats often only dream of. "The Iranians have clearly discovered in this war that they have much more power over the world economy that they or anyone else thought they would have at this point," said Borenstein.
What they're saying:
At San Francisco International Airport, frequent flyers are concerned. "It's a dire situation because six weeks out puts us right at the beginning of the high peak travel season to Europe," said Piero Ferracuti. "I think it would be a real mess. It will be a big detriment to everyone. I think it could be really tense," said French passenger Margarite Ausseau.
She says it may end up that Europeans will rediscover Europe, but without airplanes. "We have a lot of trains and a lot of other means of transportation," said Ausseau.
In a real sense, this blockage of the strait could create a new kind of world war, a fight for dwindling energy resources. And, you're paying for it.
Featured
Iran latest: Trump says Israel and Lebanon have agreed a 10-day ceasefire
President Trump says Israel and Lebanon have agreed to a 10-day ceasefire as pressure continues for Iran to agree to a deal.