The world is once again facing a fresh energy crisis reminiscent of the 1970s. But while that crisis was driven solely by disruptions in oil supply, today both oil and gas supplies are being affected simultaneously.

The energy crisis of the 1970s was primarily an oil crisis. Following the Yom Kippur War in 1973, when Egypt and Syria fought against Israel, the United States felt compelled to reduce its dependence on Middle Eastern oil. It began searching for alternative sources of oil. Not only the United States, but many other countries also started seeking alternatives to Middle Eastern oil.

As part of this effort, foreign companies began oil exploration in Bangladesh, but instead discovered gas fields. Throughout the 1980s and 1990s, Bangladesh’s dependence on natural gas steadily increased. At the same time, the use of gas also expanded in Britain and across Europe. The United States, too, gradually increased gas production as an alternative energy source.

Europe eventually became heavily dependent on Russian natural gas. At that point, it became difficult for the US to shift Europe’s gas market away from Russia. This is because exporting gas from the United States requires liquefaction (LNG) and transport across the Atlantic, which is far more expensive than pipeline gas.