Countries began to move to secure energy supplies, stability, and economic security at the same time. Energy supply security is recognized as one of the most important factors that make economic growth and development sustainable and keep the economy stable and secure.
Economic growth is directly proportional to energy consumption, as they are correlated. Therefore, developing countries that wish to accelerate their economic development need to reach higher economic growth figures, and in order to achieve this requires a lot of energy inputs, that is, energy consumption in high quantities.
In this context, securing energy supplies at low costs increases productive competitiveness and creates a smaller foreign trade deficit, and consequently, import costs will decrease and the current account deficit will decrease.
As a result of the high value of energy bills in many countries with high economic growth, which depend on imported energy sources from abroad, they are forced to prefer low economic growth numbers to avoid high current account deficits. The rise in the value of energy bills leads to an increase in inflation levels and an imbalance in other economic and social indicators.
Meanwhile, developing countries that want to reach higher economic growth figures and enter among the high-income (developed) countries and increase their per capita income, need to consume large amounts of energy, which helps maintain the continuity of energy supply security. The same rule can be applied to developed countries.
Developed countries actually boast a high GDP and per capita income, so these countries are forced to consume large amounts of energy, and any operation to cut off energy supplies will lead to lower economic growth and a significant decrease in the level of per capita income.
No matter how important the labor, capital, and human resources used in production are, energy is very important and it is difficult to achieve production without it.
Serious steps to secure the energy supply
European countries have begun to take serious steps to monitor the energy shortage that they will suffer from as a result of Russia's cutting off of natural gas, especially since many of these countries have not suffered from the security of energy supplies during the past years.
New units are being formed to monitor potential energy shortages and take action to ensure stability and economic security. The looming winter shows us just how serious the issue of security of energy supplies is.
Preference for countries with energy resources
Countries that boast energy resources will not suffer from energy supply security problems. In fact, these countries are earning a large amount of income due to the high energy prices caused by the shrinking energy supply.
These countries are also characterized by the fact that their production costs are low due to the low value of the energy used in production, so they have great advantages in terms of exports.
Many of those countries rich in oil and natural gas are now ranked first in the world in per capita income, isn't it because they are using their energy resources correctly?