The International Energy Agency said the world could lessen an oil shortage caused by Russia’s invasion of Ukraine by restricting how people use their cars and accelerating the transformation of cities dominated by the automobile.
“We are experiencing a major crisis,” IEA Executive Director Fatih Birol said at a press conference on Friday. “Oil markets are in an emergency situation. And not only that—it may even get worse than today in the next few months.”
The IEA stated that advanced economies can reduce daily oil consumption by 2.7 millions barrels in four months if they follow a 10-step program. It would greatly ease supply problems and nearly offset the 3,000,000 barrel-a-day Russian production loss that agency predicts will occur in April.
“These efforts would reduce the price pain being felt by consumers around the world, lessen the economic damage, shrink Russia’s hydrocarbon revenues, and help move oil demand to a more sustainable pathway,” the Paris-based IEA said in a report.
President Vladimir Putin’s invasion of Ukraine has upended global commodity markets, sending prices soaring and prompting an urgent search for alternative sources of energy. While most countries—excluding the U.S. and U.K.—haven’t banned Russian oil imports, and none of its major customers are sanctioning natural gas supplies, there could still be disruptions as buyers voluntarily shun trade with Moscow.
The IEA’s plan to curtail oil demand includes lower speed limits for cars, urging people to work from home, placing occasional limits on car access to city centers, making public transport cheaper, encouraging carpooling, and greater use of high-speed rail and virtual meetings instead of air travel.
The agency stated earlier this month that the European Union can reduce Russian gas imports by one-third within a year through increased purchases from other countries, increasing renewables, and improving energy efficiency.
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