The Race for Arctic Domination

Mapped: Global Energy Prices, by Country in 2022

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For some countries, energy prices hit historic levels in 2022.

Gasoline, electricity, and natural gas prices skyrocketed as Russia’s invasion of Ukraine ruptured global energy supply chains. Households and businesses are facing higher energy bills amid extreme price volatility. Uncertainty surrounding the war looms large, and winter heating costs are projected to soar.

Given the global consequences of the energy crisis, the above infographic shows the price of energy for households by country, with data from GlobalPetrolPrices.com.

1. Global Energy Prices: Gasoline

Which countries and regions pay the most for a gallon of gas?

Source: GlobalPetrolPrices.com. As of October 31, 2022. Represents average household prices.

At an average $11.10 per gallon, households in Hong Kong pay the highest for gasoline in the world—more than double the global average. Both high gas taxes and steep land costs are primary factors behind high gas prices.

Like Hong Kong, the Central African Republic has high gas costs, at $8.60 per gallon. As a net importer of gasoline, the country has faced increased price pressures since the war in Ukraine.

Households in Iceland, Norway, and Denmark face the highest gasoline costs in Europe. Overall, Europe has seen inflation hit 10% in September, driven by the energy crisis.

2. Global Energy Prices: Electricity

Extreme volatility is also being seen in electricity prices.

The majority of the highest household electricity prices are in Europe, where Denmark, Germany, and Belgium’s prices are about double that of France and Greece. For perspective, electricity prices in many countries in Europe are more than twice or three times the global average of $0.14 per kilowatt-hour.

Over the first quarter of 2022, household electricity prices in the European Union jumped 32% compared to the year before.

Source: GlobalPetrolPrices.com. As of March 31, 2022. Represents average household prices.

In the U.S., consumer electricity prices have increased nearly 16% annually compared to September last year, the highest increase in over four decades, fueling higher inflation.

However, households are more sheltered from the impact of Russian supply disruptions due to the U.S. being a net exporter of energy.

3. Global Energy Prices: Natural Gas

Eight of the 10 highest natural gas prices globally fall in Europe, with the Netherlands at the top. Overall, European natural gas prices have spiked sixfold in a year since the invasion of Ukraine.

Source: GlobalPetrolPrices.com. As of March 31, 2022. Represents average household prices.

The good news is that the fall season has been relatively warm, which has helped European natural gas demand drop 22% in October compared to last year. This helps reduce the risk of gas shortages transpiring later in the winter.

Outside of Europe, Brazil has the fourth highest natural gas prices globally, despite producing about half of supply domestically. High costs of cooking gas have been especially challenging for low-income families, which became a key political issue in the run-up to the presidential election in October.

Meanwhile, Singapore has the highest natural gas prices in Asia as the majority is imported via tankers or pipelines, leaving the country vulnerable to price shocks.

Increasing Competition

By December, all seaborne crude oil shipments from Russia to Europe will come to a halt, likely pushing up gasoline prices into the winter and 2023.

Concerningly, analysis from the EIA shows that European natural gas storage capacities could sink to 20% by February if Russia completely shuts off its supply and demand is not reduced.

As Europe seeks out alternatives to Russian energy, higher demand could increase global competition for fuel sources, driving up prices for energy in the coming months ahead.

Still, there is some room for optimism: the World Bank projects energy prices will decline 11% in 2023 after the 60% rise seen after the war in Ukraine in 2022.

Visualizing the World’s Largest Hydroelectric Dams

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Did you know that hydroelectricity is the world’s biggest source of renewable energy? According to recent figures from the International Renewable Energy Agency (IRENA), it represents 40% of total capacity, ahead of solar (28%) and wind (27%).

This type of energy is generated by hydroelectric power stations, which are essentially large dams that use the water flow to spin a turbine. They can also serve secondary functions such as flow monitoring and flood control.

To help you learn more about hydropower, we’ve visualized the five largest hydroelectric dams in the world, ranked by their maximum output.

Overview of the Data

The following table lists key information about the five dams shown in this graphic, as of 2021. Installed capacity is the maximum amount of power that a plant can generate under full load.

At the top of the list is China’s Three Gorges Dam, which opened in 2003. It has an installed capacity of 22.5 gigawatts (GW), which is close to double the second-place Itaipu Dam.

In terms of annual output, the Itaipu Dam actually produces about the same amount of electricity. This is because the Parana River has a low seasonal variance, meaning the flow rate changes very little throughout the year. On the other hand, the Yangtze River has a significant drop in flow for several months of the year.

For a point of comparison, here is the installed capacity of the world’s three largest solar power plants, also as of 2021:

• Bhadla Solar Park, India: 2.2 GW
• Hainan Solar Park, China: 2.2 GW
• Pavagada Solar Park, India: 2.1 GW

Compared to our largest dams, solar plants have a much lower installed capacity. However, in terms of cost (cents per kilowatt-hour), the two are actually quite even.

Closer Look: Three Gorges Dam

The Three Gorges Dam is an engineering marvel, costing over $32 billion to construct. To wrap your head around its massive scale, consider the following facts:

• The Three Gorges Reservoir (which feeds the dam) contains 39 trillion kg of water (42 billion tons)
• In terms of area, the reservoir spans 400 square miles (1,045 square km)
• The mass of this reservoir is large enough to slow the Earth’s rotation by 0.06 microseconds

Of course, any man-made structure this large is bound to have a profound impact on the environment. In a 2010 study, it was found that the dam has triggered over 3,000 earthquakes and landslides since 2003.

The Consequences of Hydroelectric Dams

While hydropower can be cost-effective, there are some legitimate concerns about its long-term sustainability.

For starters, hydroelectric dams require large upstream reservoirs to ensure a consistent supply of water. Flooding new areas of land can disrupt wildlife, degrade water quality, and even cause natural disasters like earthquakes.

Dams can also disrupt the natural flow of rivers. Other studies have found that millions of people living downstream from large dams suffer from food insecurity and flooding.

Whereas the benefits have generally been delivered to urban centers or industrial-scale agricultural developments, river-dependent populations located downstream of dams have experienced a difficult upheaval of their livelihoods.
– Richter, B.D. et al. (2010)

Perhaps the greatest risk to hydropower is climate change itself. For example, due to the rising frequency of droughts, hydroelectric dams in places like California are becoming significantly less economical.