Energy Agency announces an emergency roadmap to reduce oil demand
Amid supply concerns from the Russia-Ukrainian war, the International Energy Agency (IEA) announced a 10-point plan to reduce oil use, urging governments to implement these immediate measures to reduce global oil consumption within months.
Oil prices continued to rise today with little progress in peace talks between Russia and Ukraine, which raised fears of tightening sanctions and disruption of oil supplies for a long time.
The IEA that the ten proposals could reduce consumption in advanced economies “by 2.7 million barrels per day over the next four months.”
In a press conference held today, the Executive Director of the IEA, Fatih Birol, expressed his hope that oil-producing countries would intervene to ease supply concerns. He said he was looking for “some good messages that could help relieve pressure on oil markets” after the upcoming meeting of the “OPEC +” alliance led by Saudi Arabia and Russia on March 31.
During a telephone conversation with the Japanese Prime Minister Fumio Kishida, Saudi Crown Prince Mohammed bin Salman had stressed the importance of preserving the “OPEC +” agreement and the Kingdom’s keenness to maintain the balance and stability of oil markets, according to the Saudi Press Agency (SPA) yesterday evening.
The Energy Agency’s suggestions include the following points
1- speed limits
The implementation of this measure would save about 290,000 barrels per day from the use of cars for oil, in addition to reducing the demand for oil by another 140,000 barrels per day on the part of trucks.
2- Work from home
This measure saves about 170,000 barrels per day of oil use, which means that working for 3 days per week can save about 500,000 barrels per day of crude.
3- A car-free Sunday
This measure would save about 95 thousand barrels per day of oil use per day, and about 380 thousand barrels per day during a month, when the plan is applied to Sundays of the entire month.
4- Cheaper means of transportation
This measure would avoid the use of about 330,000 barrels of oil per day in the short term.
5- Restricting private cars
This measure may save about 210,000 barrels per day of oil use in the short term.
6- Promoting ride sharing
This would save about 470,000 barrels per day of oil consumption.
7- Promoting effective driving
This procedure is likely to save about 320,000 barrels per day from the use of black gold.
8- Replacing planes with trains
This would reduce oil use by about 40,000 barrels per day in the short term.
9- Avoiding air travel for work
Such a move would save up to 260,000 barrels of oil per day.
10- Adopting electric cars
This would reduce oil use by about 100,000 barrels per day, according to the IEA.