US bans Russian oil and gas
Two of worlds largest economies have placed strict sanctions on Russia, following its invasion of Ukraine. US president Joe Biden has signed an executive order to ban Russian oil, natural gas, coal and liquids. Shortly followed by the UK blanket banning crude oil, increasing pressure on the Russian economy.
Last year alone the US imported 700,000 barrels of crude per day and petroleum products, leading to the ban depriving Russia of billions of dollars in revenue. The signed order also banned new US investment in Russia’s energy sector as well as any financing or enabling foreign companies to make investments.
The UK, however, will implement the ban in a more gradual phasing out of oil by the end of the year, but will continue importing gas and coal.
With all current disruptions, gas suppliers will remain sufficient until the end of this winter, even with supply disruptions from Russia.
This is significant news, knowing about 40% of the EU’s gas consumption is imported from Russia. Communications have released there would be a gradual decrease of Russian gas by steeply investing in renewables, hydrogen and biogas while also seeking alternative supply sources within the interim.
There remains an emphasis on commitment to the bloc’s Fit for 55 proposals. This would lower gas consumption by 30%, equivalent to 100 billion cubic metres by 2030, while also trying to reduce emissions by 55% by the same date.
“The energy efficiency first principle is more relevant than ever and should be applied across all sectors and policies, with demand response measures complementing those on the supply side,” the communication said.
“In the long run, the way to avoid high gas prices is to speed up – not slow down – our transition to a clean energy future.”