IEA urges reduced transport to cut oil use amid supply crunch -Breaking
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© Reuters. FILEPHOTO: A group of oil barrels is pictured in Parentis-en-Born France at Vermilion Energy, a Canadian company. This was October 13, 2017. REUTERS/Regis DuvignauBy Noah Browning
LONDON (Reuters), The International Energy Agency (IEA), on Friday, urged customers to use less fuel, to share vehicles and to drive slower. This is part of a 10-point plan that aims to decrease oil usage as Russia’s invasion in Ukraine increases supply concerns.
Paris-based, 31-member industrialized countries plan – that does not include Russia — underlines the need for a supply crisis caused by Russian oil sanctions and buyers’ aversion.
The IEA stated that the recommendations – lower speed limits and working remotely, less travel time in cities, cheaper public transport, greater carpooling, and fewer car accidents – would reduce oil demand by 2.7million barrels per day, within just four months.
It stated that the majority of oil demand is from transportation. The plan, which draws on concrete measures already used in many countries and cities, focuses on how to reduce oil consumption to get people and goods to A and B.
Many IEA member states, as well as other countries, have or are considering power and fuel subsidy programs, which could be a setback in the agency’s efforts to reduce demand.
According to the agency, November saw a rise in fossil fuel subsidies to 440 billion dollars annually. It was a result of governments trying to prevent price increases in order to benefit consumers and reduce pollution. [L3N2VA38T]
Friday’s announcement is similar to a 10 point plan earlier this month by the group for reducing dependence on Russian gas. It stated in that Europe could reduce its imports from Russia by more then a third over the course of a year.
The IEA urged governments not only to do so for economic reasons, but also to fight climate change.
“Sustained reductions are important not only to improve countries’ energy security but also to tackle climate change and reduce air pollution.”
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