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Call for extraordinary action against the oil and gas crisis: prices could remain high and volatile

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The president of the International Energy Agency (IEA), Fatih Birol, said that important measures should be taken to compensate for the deficit caused by Russian oil and gas exports in the energy sector: “Right now there is a situation extraordinary in the energy markets, which requires extraordinary measures. ” he said.

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The president of the International Energy Agency (IEA), Fatih Birol, in his statement before the G7 summit, said that urgent and important measures should be taken against the energy crisis that has hit the world.

Expressing that the next 6 months could be extremely difficult for the world economy, Birol said oil and natural gas prices could remain “high and volatile” in this process, which could lead to a rapid increase in inflation. and a global recession.

Stressing that an emergency action plan should be created in the event that Russia reduces or completely cuts its natural gas shipments to Europe, Birol said: “This contingency action plan should include what the restrictions will be. to be implemented to industry and residences and how to minimize the negative effects of this on economic life, “he said.

Expressing that there are several important steps that can be taken in the short term to lighten the industry, Birol said: “Oil and natural gas producers must release oil and natural gas that they do not have on the market without delay and help stabilize the industry. market, especially in the Middle East large oil producers Second, some planned measures will have to be taken in the field of consumption There could be practical measures such as lowering the thermostat in homes by 1-2 degrees during the winter months or cars that run every two days. Another step could be to postpone the closure of nuclear power plants that are expected to close. Producers increase oil and gas production and contribute to supply, while measures must be taken to reduce demand It is not possible to compensate for the severe decline of exports from a country like Russia, which is the world’s largest exporter of oil and natural gas, without taking these measures. At this moment there is a situation that requires the adoption of extraordinary measures “.

“Some countries and companies are taking advantage of the crisis and making plans”
Birol, who said that the steps to be taken against the ‘global energy crisis’ that has had repercussions around the world should not make the climate crisis worse, continued: “Some countries and companies are planning to increase fossil investments by exploiting the crisis. These investments have two risks. The first risk is represented by fossil fuels. If you start your investments today, the first production will arrive on the market no earlier than 5-10 years. It is an optimistic and risky assumption for these countries and companies to think that there will be an increase in the demand for oil or coal during that time, because the technological developments and decisions that countries will make will reduce the demand for fossil fuels. The second is climate risk. If these projects are implemented, it will be nearly impossible for the world to reach the zero emissions target by 2050. In this regard, the issue I want to focus on is not to go into it to say another crisis while responding to this crisis “.

Stating that many countries currently see coal as a solution to ensure energy security, Birol said investments in coal have increased by 10% worldwide according to the latest IEA study, adding: “While everyone is expecting and hoping that interest in coal will decrease, we see an increase here. This is because coal is a solution to the security of energy supply. “I think we have to think about it in two ways. Using existing coal-fired power plants for a few months is a reasonable and justifiable move in a situation we can currently call a state of emergency, but making long-term investments in coal is risky in terms of climate, business and profitability, “he said. .

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