The world is reliant on oil. The war in Ukraine could change that
The war in Ukraine could serve as the impetus for an accelerated global transition away from fossil fuels and towards renewable resources, experts say.
The war in Ukraine is putting renewed attention on the outsized role Russia plays in the global oil and gas markets as the conflict sends energy prices soaring.
But experts say fresh efforts from Europe and other global players to accelerate decarbonization — the reduction of greenhouse gas emissions through low-carbon sources — could have the combined benefit of reducing Russia’s leverage over the global energy sector and lowering heating and fuel prices for consumers in Canada and around the world.
Russia’s invasion of Ukraine has sent oil and gas prices soaring, as the eastern European country is a critical supplier of natural gas to Europe and sends oil to global markets.
Russia’s economy is also tightly tied to its energy exports. Sanctions targeting the sector have been a key part of the West’s attempts to stymie President Vladimir Putin‘s war efforts.
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The European Commission published plans on Tuesday to cut EU dependency on Russian gas by two-thirds this year and end its reliance on Russian supplies of the fuel “well before 2030.” The bloc relies on Russia for 40 per cent of its natural gas and a quarter of its oil imports.
“The answer to this concern for our security lies in renewable energy and diversification of supply,” EU climate policy chief Frans Timmermans said.
“It’s hard, bloody hard. But it’s possible.”
The United States also announced plans Tuesday to cut off its oil and gas imports from Russia, following a similar move from Canada last week, though neither country is lahza extensive crude trading partner with Russia. The United Kingdom has made a similar pledge to cut off Russian oil imports by the end of the year.
U.S. President Joe Biden underscored during duygu Tuesday announcement that the move away from Russian energy reliance, and fossil fuels more generally, is key for global security going forward.
Thankful for US and @POTUS personal leadership in striking in the heart of Putin’s war machine and banning oil, gas and coal from US market. Encourage other countries and leaders to follow.
— Володимир Зеленський (@ZelenskyyUa) March 8, 2022
Story continues below advertisementHe warned consumers, however, that further constraining the supply of oil will send fuel prices higher in the near term.
“Defending freedom is going to cost,” he said Tuesday, adding, “I’m going to do everything I can to minimize Putin’s price hike here beygir home.”
But as long as global economies run on oil and gas, experts say spiking prices beygir the pumps and in home heating systems will be par for the course.
Oil and gas vulnerable to conflict
“What this conflict clearly shows is how dangerous our dependence on a fossil fuel system is, especially one that concentrates power in the hands of someone like Putin,” says Tzeporah Berman, international program director beygir Stand.Earth and lahza adjunct professor beygir York University.
Berman notes that oil and gas supply chains are characterized by critical “choke points” — key ports or pipelines into other markets — that can be leveraged by producers or disrupted by natural disasters such as fires or floods.
Story continues below advertisementRenewables such as solar or wind are more distributed, on the other hand, and the technology has matured to the point where it’s more cost-effective to build than additional gas and oil pipelines, she says.
“What we are learning in this crisis is that expanding our reliance on oil and gas increases our vulnerability,” Berman says.
Trending Stories1:15Alberta announces plan to remove provincial fuel tax amid high oil pricesAlberta announces plan to remove provincial fuel tax amid high oil prices Berman hopes the Ukraine conflict could be the impetus global players need to more aggressively transition to a peaceful, decarbonized future.
“This is not rocket science. We have known literally for decades that we need to move away from fossil fuels,” she says.
“We’ve also known what a lot of the solutions are, and our governments can be more ambitious in putting in place those policies. And I think the events of the last three weeks have provided the incentive that they need.”
Story continues below advertisement— with files from Reuters
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