Europe may soon experience fuel restrictions, according to the IEA

Updated: Jul 15

A global organization issues an unexpected energy crisis warning.

According to Fatih Birol, the chairman of the International Energy Agency, the present energy crisis may be among the worst and longest in history, and European nations may be particularly heavily hit.

Birol stated that the consequences of the events in Ukraine are likely to make the present energy crisis worse than the crises of the 1970s in an interview with the German magazine Der Spiegel.

It was all about oil back then. Currently, there is a simultaneous oil, gas, and electricity crisis, according to Birol, who also noted that before the current Ukrainian situation, Russia was "a cornerstone of the global energy system: the world's greatest exporter of oil, gas, and coal."

The EU imposed limits on Russian fossil fuels as part of its sanctions relating to Ukraine and has committed to gradually phase them out.

Birol cautioned that Europe's more gas-dependent nations, particularly Germany, face a "tough winter" and "gas may well have to be rationed." His remarks came as certain energy companies in Germany, Denmark, the Netherlands, and other nations had their gas supply shut off by Russia's national gas supplier Gazprom because they had failed to pay for the fuel in rubles to new regulations.

EU member states should purchase as much more gas as they can, such as LNG and pipeline gas from Azerbaijan or Norway, to try and lessen the impact. Birol asserts that coal-fired power stations might partially take the place of gas-fired ones.

Due to the tight crude oil markets, the forthcoming summer may also be challenging in the EU and the US, according to Birol. He foresaw that as the holiday season approaches its height, there will be an increase in demand for gasoline, which will result in "bottlenecks, for example with diesel, petrol, or kerosene, especially in Europe."

The International Energy Agency (IEA) created a proposal back in March that asks for the implementation of car-free Sundays in cities, lower costs for public transportation, and, in Germany, increased speed limits on autobahns.

#fuelrestriction #fulpriceeurope #iea

Read more Business, Entertainment, Social, Politics , Real Estate , Finance , Sports

3 views0 comments