IEA calls for driving restrictions and air travel curbs to reduce oil demand - Financial Times

The International Energy Agency has called for member countries to adopt “emergency measures” to cut oil demand in the wake of Russia’s invasion of Ukraine, including driving restrictions, lower speed limits and curbs on air travel.

Fatih Birol, head of the energy watchdog, on Friday warned that such steps might be necessary because “oil markets are in an emergency situation . . . and it may get worse”.

As much as 2.5mn barrels a day of Russian oil exports could cease from next month due to the impact of the war and consumer boycotts of Russian crude, he said. Russia is one of the world’s largest oil producers.

The IEA has proposed 10 measures to reduce oil demand by 2.7m b/d within the next four months, which it said would help balance potential loss from the Russian market.

“As a result of Russia’s appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades,” Birol said.

He urged IEA member countries — which include many of the world’s largest energy consumers such as the US, Japan and Germany — to cut demand now, “to avoid the risk of a crippling oil crunch”.

A 10-point plan to cut oil use

Action	Impact
Reduce speed limits on highways by at least 10kph	Saves about 290,000 barrels per day of oil use in cars and an additional 140,000 b/d from trucks
Work from home up to three days a week where possible	One day a week saves about 170,000 b/d, three days saves about 500,000 b/d
Car-free Sundays in cities	Every Sunday saves about 380,000 b/d, one Sunday a month saves 95,000 b/d
Make the use of public transport cheaper and provide incentives for micromobility, walking and cycling	Saves about 330,000 b/d
Alternate private car access to roads in large cities	Saves about 210,000 b/d
Increase car sharing and adopt practices to reduce fuel use	Saves about 470,000 b/d
Promote efficient driving for freight trucks and delivery of goods	Saves about 320,000 b/d
Use high-speed and night trains instead of planes where possible	Saves about 40,000 b/d
Avoid business air travel where alternative options exist	Saves about 260,000 b/d
Reinforce the adoption of electric and more efficient vehicles	Saves about 100,000 b/d
Source: IEA

The measures include cutting speed limits on highways by 10kph, which would save 430,000 b/d, reducing business air travel and taking trains instead of planes where possible.

Working from home three days a week would also help cut oil demand, along with making public transport cheaper or even free. Many of the proposals would cut down on driving, including banning private cars from cities on Sundays and limiting private car access to roads in large cities.

The IEA was founded in the 1970s to help oil-consuming countries respond to the 1973 oil crisis and monitor global energy markets. But rarely has the body had to resort to the dramatic demand-reduction steps that it outlined on Friday.

The price of Brent crude, the international benchmark, soared to $139 a barrel after Russia’s invasion of Ukraine amid supply concerns. On Friday it traded at $107 a barrel.

Barbara Pompili, France’s ecological transition minister, said the IEA plan to cut consumption offered “interesting ideas” that could be a road map for countries to reduce their oil dependence.

“France and all European countries must get out of their dependence on fossil fuels as soon as possible. It is an absolute necessity for the climate, and also for energy sovereignty,” she said.

The IEA will present the recommendations to energy ministers next week as part of its response plan for the current energy crisis.

Birol warned that the combination of loss of Russian exports, increased demand during the summer travel season and low storage levels meant the oil market could get even tighter than it was now.

“The reason we came up with this report is that oil markets are in an emergency situation, and not only that, it may get worse,” he said.

Adblock test (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmZ0LmNvbS9jb250ZW50L2E1ZGYwNmNmLWExMWMtNDJiZC04MWI1LTVlMzBlYzNhNjRhYdIBAA?oc=5

2022-03-18 10:29:08Z
1330602830