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Dimon calls for an 'energy Marshall Plan': The problem will last 'for years'

Published 13/12/2022, 08:06 pm
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Investing.com -- The energy crisis remains a top issue in Europe, although the worst-case scenario is likely to be avoided, thanks to a mild winter, which leaves European stocks sufficient to face the rest of the cold period.

However, many believe that gas, and energy in general, will remain a key issue in Europe and other parts of the world for an extended period.

The danger of war in Ukraine is 'extraordinary,' suggests JPMorgan CEO

This is especially true of JPMorgan Chase CEO Jamie Dimon, who highlighted the dangers of the war in Ukraine and its impact on energy markets.

"The danger of this war is extraordinary," Dimon said in an interview on CBS's Face the Nation program that aired Sunday.

He judged that the market lull will be short-lived explaining, "This oil and gas thing, it looks like they (the Europeans) will get through it this winter. But this oil and gas problem is going to go on for years."

According to him, the war in Ukraine could last for years and in the meantime, the longer it lasts, the worse Europe's energy security will become.

"If I was in the government or anywhere else, I would say, I have to prepare for it getting much worse. I hope it doesn't, but I would definitely be preparing for it to get much worse," he said.

"The Europeans are terrified. Their energy prices are two, three, four, five times ours, which is hurting consumers, which the governments have to do something about, and it's hurting businesses."

He further added that "it's just started," warning that "the pain and suffering is going to get a lot worse."

Dimon calls for a 'Marshall Plan for energy'

He said governments and energy companies should therefore invest more in infrastructure to prevent a more severe crisis next year.

Referring to the U.S. aid given to Europe as part of the post-World War II reconstruction effort, Dimon went so far as to call for a "Marshall Plan for energy," for investments in renewable energy sources, but also in fossil fuels, in the face of "underinvestment in oil and gas."

While Dimon acknowledged that many countries are shifting away from fossil fuels to cleaner energy sources, he believes that supplies of "secure, reliable, cheap oil and gas" are essential to keeping electricity prices down.

"To me, to solve climate, we kind of need all the above," he said. "Gas is the best and cleanest way to reduce coal, which is the best way to reduce CO2," he explained.

Finally, it should be remembered that according to CNN and other media outlets, the JP Morgan boss had already raised the idea of a "Marshall Plan" for energy with the White House in March this year.

(Translated from French)

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