CEM REPORT | International energy discussion has in recent times been occupied by Russian impact in the global energy market following the country’s invasion of Ukraine and the consequent sanctions that has grossly affected prices of major products especially diesel and gas
Europe found itself in twinning dilemma, having realized that energy sanction on Russia would have serious consequences on the economy of the continent as Russia supplies more than 40 percent of Europe Energy
On the other hand, Russian energy sector remain the only target that can have direct downward impact on the country’s revenue flow and weaken its funding capacity of the hostility in Ukraine, the only way to ‘make him pay’, according to some European leaders.
It suddenly done on Europe the urgent necessity to begin to hunt for alternative source of energy supply to wean itself form Russian dependence for supply. This is the only full implementation of sanction on Russia energy can work.
After some moment of galvanizing, top energy executives are saying Europe may be able to do without Russian gas necessary to permanently shut it out of the continent or global energy market.
The European Union’s resolve is “firm” to wean itself off of Russian supplies, Meg O’Neill, CEO of Australia’s Woodside Petroleum, said at an energy conference in Brisbane Tuesday, according to the Financial Times.
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“The Europeans post-World War II thought there would never be war on European soil again,” she said. “I think what has happened is so shocking for them that I think they will not be lulled into complacency around acquiring energy from Russia in the future.”
According to Business Insider, the comments come as the EU edges closer to a phased-in embargo of Russian oil, which the US has already banned. European countries are also looking to reduce their reliance on Russian natural gas by sourcing it from elsewhere.
Europe isn’t the only market that can turn to alternatives to Russian energy. Liquefied natural gas producers in Australia, O’Neill added, can help fill demand in Asia once Russia is eventually out of the trade loop.
The world won’t allow Russia to return to global markets unless President Putin has a “change of heart,” which is unlikely, according to Kory Judd, director of operations for Chevron’s Australian business.
“There’s a bit of a moral transition that would have to happen,” Judd said at the Tuesday conference. “The move has not been an energy move, it’s been a social move as people have recognised the destructive nature of the conflict. And so I suspect that if there were a quick change of heart and more responsible actions, there could be a reintegration.”
Already, Italy has signed a gas deal with Angola. A declaration of intent was signed in April to develop “new” natural gas ventures and to increase exports to Italy