Oil and gas shortages are predicted if Ukraine war continues
The International Energy Agency (IEA) has urged countries to reduce on fuel consumption so as to meet deficits in supply which has been caused by Russia’s invasion of Ukraine.
IEA says the World may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies.
Faiths Birol, the Agency’s Executive Director told journalists that emergency measures can quickly cut oil demand by 2.7 million barrels a day, reducing the risk of a damaging supply crunch.
Birol says the repercussions of Russia’s invasion of Ukraine could intensify in the coming months thus causing shortages in fuel supply especially for the transport sector. Today Birol and the Agency suggested a new 10-Point Plan to Cut Oil Use . The IEA suggests that lowering oil demand by 2.7 million barrels a day within four months – equivalent to the oil demand of all the cars in China.
The savings, would according to IEA significantly reduce potential strains at a time when a large amount of Russian supplies may no longer reach the market and the peak demand season of July and August is approaching.
Among the proposals in the 10-Point Plan to Cut Oil Use include the reduction of speed limits on highways by at least 10 km/h, the increase car sharing and adopt practices to reduce fuel use
“As a result of Russia’s appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies,” says Birol.
He observed that while IEA member countries have already stepped in to support the global economy with an initial release of millions of barrels of emergency oil stocks, there was need to take action on demand to avoid the risk of a crippling oil crunch.
The new analysis report also includes recommendations for decisions to be taken now by governments and citizens to transition from the short-term emergency actions included in the 10-Point Plan to sustained measures that would put countries’ oil demand into a structural decline consistent with a pathway towards net zero emissions by 2050.
-URN
