The roots of the gas market crisis which lasted until the end of September 2021 can certainly be traced back to underinvestment in that market relative to actual needs, without probing into any deeper reasons. This was the standpoint presented by Fatih Birol, Executive Director of the International Energy Agency. He argued that the gas market is going through a classic supply crisis associated with the unprecedented surge in demand recovering after the pandemic, which the supply is unable to keep up with. A remedy that could help avoid such crises in the future would be to invest in the gas market and its infrastructure, while building up adequate stocks.
When we try to pinpoint reasons behind the underinvestment, i.e. to understand why there is not enough gas available on the market, there are strong arguments that such reasons may lie in internationally uncoordinated efforts involving alternative energy sources.
The regulatory and financial incentives for EU operators to accelerate investment in renewable energy are not matched by any requirements to secure the continuity of energy supply. The default role was played by the gas capacity along with the liquid (until the time of crisis) LNG market, which supplies the entire world. But the market regulators resolving to step up the energy transition not only refused to afford support, but actually discouraged investment in that market. As a result, investment in oil and gas production globally has fallen by more than a third over the past decade.
(accessed on Feburary 3rd 2022)