Energy disaster awaits EU after this winter – Oil CEO – RT Business News
The EU is « in good condition » In terms of energy reserves this winter, however, there is a real risk of shortages looming in 2023, top oil and gas executives have warned.
The region is facing an unprecedented energy crisis following a drop in imports from Russia. Oil and gas shortages and record inflation have led to an overall crisis in the cost of living across the bloc.
But while worries focus on the turbulence of the coming winter, it’s the upcoming cold season they should really be worried about, said chief oil trader Vitol CEO Russell Hardy.
“We have a tough winter ahead, and thereafter we have a tougher winter in the year ahead because the production available for Europe in the first half of 2023 is significantly lower than the production we had at our available in the first half of 2022”, he said at a conference in Abu Dhabi last week.
Energy prices are off the charts and are close to « unaffordability » with many homes « spending 50% or more of their disposable income on energy », BP CEO Bernard Looney warned, agreeing with his colleague that next winter « in Europe could be even more difficult. »
Even though the EU has managed to fill its energy stocks to 90%, according to IEA data, the reserves consist mainly of Russian gas. But as the bloc accelerates the transition away from Russian pipeline deliveries, there will be no supply from the bloc’s former biggest supplier.
Russian gas producer reveals dramatic drop in deliveries to EU
« The problem is not this winter. It will be next because we will not have Russian gas – 98% [less] next year, maybe nothing,” The head of Eni, Claudio Descalzi, underlined.
Faced with demand from China, a major gas importer, and the surge in LNG prices, the leaders of energy companies are worried about possible social unrest, pointing the finger at certain EU countries, such as the Czech Republic where households have seen their energy bills increase tenfold.
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