He believes that skyrocketing oil prices and gas prices will cause "real unrest."
Stark Warnings
One billionaire raises alarm about possible social unrest caused by rising energy prices.
Stephen Schwartzman, Blackstone CEO, stated to CNN that he believes that oil and gas shortages will cause a global social crisis. He is concerned that this could also impact on long-standing political institutions.
Schwarzman stated to CNN that you will see very unhappy people in emerging markets and the developed world. The result is real unrest. This is a challenge to the political system, and it's all completely unnecessary.
Energy Crisis
Skyrocketing oil prices and rising gas prices are fueling Schwartzman's worries. US oil prices hit a seven-year high at more than $85 per barrel on Monday. CNN reports that vehicle gas prices reached an average of $3.40 per gallon.
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Globally, natural gas prices are also rising. They have risen more than 180 percent over the past year. Due to high demand, energy companies in China were also ordered to reduce or stop production.
Schwartzman stated to the network that there would be a shortage of energy. It will cost more when there is a shortage. It will probably cost you a lot more.
High Demand and Low Supply
Although there is no single cause of the energy shortage, high demand can play a significant role in the recovery from the pandemic that decimated the economy and the associated economic downturns.
It is simply the basic supply and demand. There is not enough energy available. Many people need it. Prices for energy will soar. Schwarzman also stated that it is difficult to increase supply as it becomes increasingly difficult for energy companies borrow money to finance oil and gas drilling.
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CNN reported that it is almost impossible to raise the money needed to drill holes if you do not have enough money.
This is another sign that countries around the globe need to move to renewable energy sooner than they do now, if nothing else. It is better for the environment and could address an ever-growing energy crisis that seems to be not getting better.
READ MORE: A private-equity billionaire warns that the energy crisis will cause social unrest [CNN]
More about the energy crisis: Lebanon's entire electric grid has collapsed
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