•Global energy prices have been increasing at an alarming pace. In recent months, the United States has seen a 25% rise in fuel prices, and record-high fuel prices are now being seen in Asia. Additionally, the supply of fuels has decreased. The problem is bad enough that the Biden Administration has recently encouraged G20 energy-producing countries to increase oil production to meet demand and lower costs in light of simultaneous efforts to decrease reliance on fossil fuels to decrease greenhouse gas production. Part of the increase in oil prices is due to a shortage of other fuels such as diesel fuel, increasing demand for crude oil. The problem is also heightened by the rebound in energy consumption following COVID-19 lockdowns. A problem with rapidly rising fuel prices, also known as fuel shock, is that they can negatively impact the economy by driving down consumer confidence, decreasing growth consumption. Alternatively, reduced consumer consumption may help recent global struggles with supply chain issues. From an industry point of view, increased energy costs may lead businesses to divert attention from innovation towards energy conservation strategies which may actually be beneficial from an environmental viewpoint. On the home front, firewood for home heating has risen dramatically over the past year, along with the demand for firewood (an inefficient home heating source often associated with poor indoor air quality depending on the heating production system used).

•Economist , T. (2021, October 23). How soaring energy costs could hobble the COVID-19 recovery. The Economist. Retrieved November 22, 2021, from https://www.economist.com/finance-and-economics/2021/10/23/how-soaring-energy-costs-could-hobble-the-covid-19-recovery.

•Adler, M. (2021, November 20). Soaring Fuel Prices Stoke Rush to Stockpile Firewood Across U.S. Bloomberg.com. Retrieved November 22, 2021, from https://www.bloomberg.com/news/articles/2021-11-20/americans-load-up-on-firewood-as-home-heating-costs-skyrocket.

•Shalal, A., & Mason , J. (2021, October 30). Biden pushes G20 energy producing countries to boost production. Reuters. Retrieved November 22, 2021, from https://www.reuters.com/business/energy/biden-push-g20-energy-producers-boost-capacity-ease-price-pressures-2021-10-30/.

• Jaganathan, J. (2021, October 1). Asian prices surge to record high this week as Winter starts. Reuters. Retrieved November 22, 2021, from https://www.reuters.com/business/energy/asian-prices-surge-record-high-this-week-winter-starts-2021-10-01/.

Energy Prices, the Environment, and Business