Summary
Starting in 2021, after the economic rebound from COVID-19 and compounded by geopolitical disruptions (notably the war in Ukraine), global energy supply — especially natural gas and oil — tightened. Prices surged; many households and industries faced fuel, electricity, and heating cost shocks. :contentReference[oaicite:10]{index=10}
Systemic Features
- Global interdependence of energy markets, supply routes, and geopolitical risk creates systemic exposure — disruption in one region propagates worldwide.
- Tight coupling between energy supply, manufacturing, household consumption, transport, and social welfare systems means energy shocks cascade across sectors.
- Lack of redundancy in energy supply routes and dependence on fossil-fuel imports made many economies vulnerable.
- Price & inflation feedback loops: energy price hikes feed into inflation, cost-of-living crises, social stress.
Cascading Systems Affected
- Household energy & heating → social welfare, poverty risk
- Industrial manufacturing & production (energy-intensive sectors)
- Transport and logistics (fuel price increase)
- Inflation, cost-of-living, economic stability
- Governments, social safety nets, public policy
Impacts
- Increased energy poverty, risk of social destabilization in vulnerable regions
- Industrial slowdown or shutdowns in energy-sensitive sectors
- Inflationary pressures globally / regionally, reduced purchasing power, economic strain
- Renewed scrutiny on energy dependency and calls for energy-system restructuring, diversification, and resilience planning