Europe and the United States can more easily tolerate the increase of energy than developing countries. The growth in energy prices, especially oil and gasoline, will have economic consequences that will vary from country to country. Higher energy prices, especially oil, are reflected in different ways, depending on the level of economic development of the country and the percentage of national gross product allocated for energy needs.
In highly developed countries, the amount allocated for energy products is only three to four percent of the total national gross domestic product (GDP), while in developing countries, like Egypt or Malaysia, about nine percent of GDP is allocated for this. However, it is estimated that in the US, any increase in oil prices by $ 10 a barrel, a few years later, leads to a fall in economic growth rates by two-tenths of a percent.
After problems with nuclear power plants in Japan, Germany decided to shut down other nuclear power plants over time. Italy is again considering plans to build nuclear power plants, and the Parliament of Switzerland has decided to shut down all nuclear power plants in that country. India, the People’s Republic of China and South Korea have decided to continue the aggressive construction of new nuclear power plants, seeing as the only way to provide electricity without polluting the environment, while the US has a modest program for further nuclear power generation.
New stocks of natural gas from shale had a major impact on keeping prices of natural gas at a relatively low level, compared with the price of oil. That it has encouraged greater use of gas, especially in the production of electricity. Prior to the discovery of the possibility of using natural shale gas, which only happened a few years ago, some Middle Eastern countries and natural gas producers have built plants to convert natural gas to a liquid state, with the goal of maritime transit in the United States. However, such a natural gas is no longer needed in the US, so now it is Europe’s use of a low-cost Middle East gas price. Natural gas prices from the Middle East are now more competitive, or lower than those offered by Russia. Therefore, the discovery of new natural shale gas sources in the US has been indirectly beneficial not only to the world’s leading economic power but also to the European market.