Ukraine Invasion Prods World To Steer Clear Of Fossil Fuels: Experts

As Russia’s invasion of Ukraine becomes more violent, the world is on the cusp of what may become the worst energy crisis since the 1970s.

Photo Insert: The International Energy Agency (IEA) predicts nearly half of Russia’s oil exports will be off the market by April as buyers steer clear.

Whereas those crises only involved oil, Russia is one of the world’s largest producers of natural gas, coal, and even the fuel used in nuclear power plants, energy experts Jason Bordoff and Meghan O’Sullivan wrote for The Economist.

The energy calamity demands an immediate response to keep cars moving, homes powered and heated, and prevent a global recession induced by high energy prices. There is also the urgency of weaning the world from fossil fuels as a major United Nations (UN) report made clear last month.

In the long run, doing so benefits not just the climate, but also energy security for large consumers of fossil fuels. Pragmatic policies that ensure secure and affordable energy today and that help to bring about a lower carbon future are needed.

Even though American and EU policymakers initially designed sanctions to exclude energy, the International Energy Agency (IEA) predicts nearly half of Russia’s oil exports will be off the market by April as buyers steer clear—although some of that will still flow to market at steep discounts in under-the-radar transactions with countries like China and India.

Natural gas continues to flow into Europe but Russian leaders have threatened to cut off those supplies in retaliation for sanctions.

Even before the invasion of Ukraine, energy markets were tight after years of underinvestment as a result of social pressures to curb fossil-fuel spending, the pandemic, and the industry’s poor recent returns. As a result, energy prices soared before falling slightly, Bordoff and Sullivan noted.

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