Embargo against Russia: German oil reserve lasts even longer

CSU boss Markus Söder is calling for the lifetimes of nuclear power plants in Germany to be extended.

The plans of Federal Minister of Economics Robert Habeck to expand renewable energies are right, in order to become independent of Russian energies relatively quickly.

"But it would be foolish to get out of nuclear energy now," said the Bavarian politician on ZDF Morgenmagazin.

Habeck brought his plans for the expansion of green energy to the government cabinet on Wednesday and presented them later.

EU Commission President Ursula von der Leyen is also threatening an oil embargo against Russia after her authority has just proposed a ban on imports of coal.

Speaking to the European Parliament, she said: "These sanctions will not be our last sanctions." And she added: "Now we have to look at oil and the revenues that Russia gets from fossil fuels." Similar statements were made by EU Council President Charles Michael.

"I think oil and even gas will need action sooner or later."

For natural gas, companies can store their inventory in gas storage facilities.

The storage level in Germany is currently 26 percent, which is not unusual for this time of year, but is not much either.

In contrast, there is a reserve for crude oil, which the crude oil stockpiling association (EBV) maintains.

The statutory obligation to keep stocks includes the average quantity of crude oil and crude oil products imported into the Federal Republic in 90 days.

This involves crude oil, petrol, diesel fuel, light heating oil and jet fuel (JET A-1).

The EBV currently has reserves of approximately 24 million tons of crude oil and petroleum products.

If the almost 28 million tons of imports from Russia were to be eliminated, that would still be enough for ten to eleven months.

German coal importers assume that imports from Russia can be completely replaced by new suppliers by the end of the year.

The Federation of German Industries supports the policy of sanctions for coal - but warns of a complete failure of Russian gas supplies. 

Ifo President for gas parallel structures

The president of the ifo economic research institute, Clemens Fuest, is promoting the development of alternatives to Russian gas.

"We need parallel structures in order to be able to interrupt gas imports from Russia quickly and at affordable costs in future crises," he writes in a new analysis.

This is preferable to a complete phase-out of Russian gas for economic and strategic reasons, regardless of whether imports are halted during the war.

Regarding the current energy embargo discussion, he said: "If it makes sense at all to stop gas imports from Russia, then immediately."

After the end of the Ukraine war, it seems wiser, both in terms of energy supply costs and strategically, to continue importing gas from Russia, but at the same time have parallel structures available, including ports for liquid gas and other new sources of supply, so that one can, if necessary can quickly do without Russian gas.”

This should be coordinated across the EU and will ultimately lead to a gas supply "that is more expensive than before, but also much safer".

Thus, according to Fuest, the current mutual dependence between the EU and Russia would become Russia's dependence on the EU and thus a better situation for the EU from a strategic point of view.

A permanent break in gas imports would end the EU's dependency on imports, but it would also eliminate the possibility of exerting pressure on Russia.

Whether Russia would be prepared to enter into this one-sided dependency is an open question.

Easter pack for green energy

In the morning, the federal cabinet will deal with the Easter package from Federal Minister of Economics Robert Habeck (Greens), which is intended to make an important contribution to achieving the climate goals and aims, among other things, for a comprehensive amendment to the Renewable Energy Sources Act.

According to information from government circles, the principle should be anchored that the use of renewable energies "is in the overriding public interest" and also serves "public security" in view of the consequences of the Ukraine war.

Bavaria's Prime Minister Söder advocates leaving the nuclear power plants on the grid for a few more years and thus supplying millions of people with electricity.

It is possible to quickly become independent of oil and coal from Russia.

But that's not going to happen with gas.

"Then our economy would suffer massive damage, I think it would even partially collapse and a real social poverty trap could arise for millions of Germans," said Söder.

The main part of natural gas consumption is in industry and households in Germany, which together accounted for two-thirds last year.

Every second apartment is heated with gas.

Nuclear power plants would not be a substitute for this.

In power generation, the share was 13 percent.

Last year, the six nuclear power plants in Germany also contributed 13 percent to electricity generation.

After the shutdown of three nuclear power plants at the end of the year, the share of power generation should also halve.

The three remaining systems are also scheduled to be shut down by the end of 2022.

You have to concentrate on the existing energy sources, said Söder: "Switching off nuclear energy is a serious mistake." He announced that he wanted to expand wind energy in Bavaria.

"We will create exceptions to get significantly more wind - at least 500 wind turbines."