World Bank President David Malpass said in a radio interview on Sunday that Europe is experiencing an “immense” energy crisis and that the U.S. should increase its energy production to counteract the problem.
“Europe’s dependency on Russian oil and natural gas and coal has become immense,” Malpass told host John Catsimatidis on “Cats Roundtable – WABC 770 AM”
He continued, “As you think about who has the potential to make much more — whether it’s clean fuel, cleaner fuels like natural gas, whether it’s better transmission techniques in the electricity sector — it’s the U.S. because it’s got the most capital available and can marshal that capital into these sectors.”
Russia’s war on Ukraine beginning in Feb. continues to have significant global effects, especially on countries that rely on the massive country for their energy production.
Cold conflict between Russia and the members of the European Union, including sanctions back and forth, has exacerbated economic issues in the countries.
Malpass said that the “sharp slowdown” due to the energy crisis in Europe is spreading across the world, including into the U.S.
“They’re having major problems in terms of their economic slowdown because of the sudden shortage of fuel and the price of fuels and of course that’s penetrating everywhere, electricity bills in the U.S. are going up because of the shortage of fuel in Europe,” he said.
The economic analyst said he was especially concerned about the effects of the crisis on poorer countries without as many resources.
“It’s particularly challenging for people in poor countries. We are in what, I am afraid, is a ‘crisis in development,’” he told Catsimatidis.
Malpass continued, “Energy is going up in price but also fertilizer and food are going up in price, all as part of a supply chain.”
There is a danger that these economic trends will persist into the following years, Malpass said, adding that it would be “really problematic for billions of people around the world” if that occurred.
“These are massive problems for the world. It will take time to solve,” he said.
“Part of the solution has to be a lot more production.”