Time to rethink our energy plans

This is the first time the world is witnessing four crises at the same time -- oil, gas, coal and food inflation. To my knowledge, the world has never before seen such a situation. From the United States to all the European countries, developed countries, developing countries like us and even the poor countries of Africa, all are facing the crisis in one way or another.

After the Ukraine-Russia war began, LNG prices at the global market rose by up to 8-10 times in a few months. Fuel prices have also increased a lot. Prices of food grains Increased by 40-50%. On the other hand, the value of currency fell and as a result the cost of imports increased. In such a situation, there is no other alternative but to reduce imports and be economical.

I do not see any alternative to the strategy that our government has taken for the time being. However, the initiative taken by the government to reduce the consumption of energy should be temporary. Reducing electricity consumption and keeping gas supply under control may not be a long-term solution. It will gradually slow down economic activities. If the industries do not get gas and electricity supply, production will stop. Buyers will shift elsewhere if the products ordered for export cannot be produced properly. Imports and dollar income will both decrease. Any steps that disrupt production and business cannot be taken.

Apart from food inflation, the biggest crisis for us is the gas shortage. Many experts feel that we have some responsibility behind our gas crisis. We should have focused on our own natural gas exploration. It was necessary to take the initiative to explore coal, which we have and use for power generation.

After the start of the Ukraine-Russia war, all countries have become aware of the drawbacks of using gas and oil for power generation. Many countries, including America and Germany, are now considering coal-based power plants. All countries are proceeding with long term planning. We also need to plan for the long term. We need to rethink our energy plans. We need to realign.

Many experts say if we explore the gas and coal that is under our soil, we will have resources that will last 100 years. This potential should be used. The newly discovered maritime resources should be exploited. At least 80% of the fuel needs to be internally sourced and we should chart a roadmap for that goal.

Abul Kasem Khan is the director of AK Khan & Co Ltd and former president, Dhaka Chamber of Commerce & Industry