Oil: an IEA plan to reduce consumption in the face of the "shock" of war

Europe 1 with AFP 9:38 p.m., March 18, 2022

Lowering speed on the road, telecommuting, making public transport cheaper: the IEA unveiled measures on Friday to quickly reduce oil consumption in the face of the risk of "shock" caused by the Russian invasion of Ukraine.

Taken together, these 10 measures would reduce oil consumption by 2.7 million barrels per day in four months, the equivalent of the consumption of all cars in China, according to the International Energy Agency ( OUCH).

“The world may be facing its biggest oil supply shock”

She had already presented a plan to reduce dependence on Russian gas and has now focused on oil, of which Russia is the world's largest exporter and the second for crude, behind Saudi Arabia.

"As a result of Russia's horrific aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades," said IEA Executive Chairman Fatih Birol. , who presented his plan.

Part of Russian production will indeed no longer be available for international markets, whether it is hit by sanctions (like those of the United States) or quite simply shunned by companies that are deliberately turning away from Russia.

A call to produce more to supply the market

The developed countries members of the IEA, created in 1974 after the oil shock, have already drawn on their strategic reserves and the institution launched an appeal on Friday to producing countries to do more to supply the market.

Fatih Birol thus said he hoped that the next meeting of OPEC+ (which brings together members of the cartel and their allies, including Russia) at the end of the month will "relieve the market" and asked oil-producing countries to to be "on the safe side".

“But we can also act on demand,” he stressed, unveiling the measures to save oil, focused on the transport sector.

He suggests reducing the authorized speed on the motorway by at least 10 km / h, working from home up to three days a week if possible, or even organizing car-free Sundays in the cities.

Reduce greenhouse gas emissions and air pollution

These measures not only have the advantage of improving security of supply but also of reducing greenhouse gas emissions and air pollution, while reducing expenditure.

Oil prices rose sharply following the invasion of Ukraine, resulting in soaring prices at the pump and support measures for motorists and professionals in some countries.

The IEA's plan also has the advantage of being able to be implemented quickly, by the summer.

Because the peak of demand, with the major holidays in July and August in the northern hemisphere “approaches”, underlined Fatih Birol.

Barbara Pompili, the French Minister for Ecological Transition, whose country holds the rotating presidency of the EU, welcomed "interesting ideas which are for some in line with our own ideas", without specifically repeating the proposals set out.

In the longer term, Europe wants to break with its energy dependence on Russia.

Commission President Ursula von der Leyen has said she will propose the goal of EU independence from Russian fossil fuels by 2027.