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The Energy "Crisis Curve" Is Accelerating in a Dangerous Part of the World

Sitting in a new land of plenty, Americans rarely notice disturbing energy trends elsewhere in the world.

But in the course of my global work, it's impossible not to recognize there are serious energy shortages developing in other parts of the world.

In fact, I'm beginning to see worrisome indications this energy "crisis curve" is now accelerating.

Oddly enough, the latest danger signals are coming in from parts of the world normally thought of as net energy producers: the Middle East, North Africa, and Central Asia.

Now, there are new concerns that this brewing energy crisis may well be the next serious step in an ongoing "Arab Spring."

And while countries like Saudi Arabia, Kuwait, and the United Arab Emirates have largely been untouched by this sweeping regional political unrest, elsewhere matters are getting worse.

Suddenly, energy has become a bigger trigger point in a highly volatile part of the world…

A Fast-Growing Energy Crisis

Over the past week, new warnings have emerged in Egypt, Yemen, and Pakistan that the situation is deteriorating.

In Egypt and Yemen, the energy crisis is a direct result of political strife. Both countries are facing a massive collapse in electricity availability because of the unrest.

Egyptian energy officials are now publically stating the country could face a grid shutdown in the next few months, an effect of a systemic breakdown in both the generation and distribution components. In fact, even as Cairo seriously looks at massive imports of coal to arrest a fuel supply shortage, there are increasing questions about the ability of the infrastructure to even support it.

Meanwhile, in Yemen, the problem is a direct result of opposition attacks on the electricity-generation facilities themselves.

As for Pakistan, they have been in dire straits for some time, as we have discussed here previously. The country has suffered through increasingly frequent blackouts and the inability to provide industries regular power for more than a few hours each day.

That has a direct and very negative effect, on production, employment, and overall economic conditions.

Here's how Pakistan plans to reverse their ongoing energy crisis…

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About the Author

Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle

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