The International Energy Agency (IEA) has called rich countries to reduce speed limits on highways, drive and fly less often, and work more from home to reduce demand for oil and avoid the “risk of a devastating oil crisis following Russia’s invasion of Ukraine.
Highlights
- Russia’s invasion of Ukraine has potentially triggered one of the biggest oil supply shocks in decades, the IEA warned on Friday, offering a “10-Point Plan to Reduce Oil Consumption” to help ease the crisis.
- The plan suggests reducing speed limits on motorways by at least 10 km/h, working from home when possible, limiting air travel and adopting electric and more efficient vehicles.
- The measures also suggest making public transport cheaper, implementing “car-free Sundays” in cities and developing carpooling.
- If fully implemented by advanced economies, the IEA said these measures could reduce oil demand by 2.7 million barrels per day in four months.
- These measures will “reduce price pain” felt by consumers, mitigate economic damage and remove an important source of revenue for Russia.
Important figure
4.43 dollars (4.02 euros) per gallon (3.7 liters). That’s the average price of regular gasoline in the United States this week, a record high, as the conflict in Ukraine pushed up prices at the pumps across the country. In the UK, prices also reached a record high of 165 pence (1.96 euro) per liter this week.
Key Context
Russia is the world’s largest exporter of fossil fuels and its third largest producer. Its invasion of Ukraine has thrown global oil markets into turmoil, and its reliance on its hydrocarbon exports – particularly to Europe – has made the sector both vulnerable and particularly difficult to target with sanctions. . The United States and Canada have announced bans on Russian oil imports, the United Kingdom plans to do so by the end of the year and the European Union, which is particularly dependent on Russian fuel, promised to end its use of Russian hydrocarbons as soon as possible.
essential quote
« In the wake of Russia’s appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock yet. decades,” said IEA Executive Director Fatih Birol. “IEA member countries have already stepped in to support the global economy by initially releasing millions of barrels of emergency oil stocks, but we can also act on demand to avoid the risk of a shortage. paralyzing oil,” added Mr. Birol.
Article translated from Forbes US – Author: Robert Hart
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