European dependence on Russian energy fully exposed, once again
Those who thought 'energy security' and 'energy dependency' were empty buzz-words, must think again. What many had expected has happened: the dispute between Russia and Belarus over gas prices has escalated and now hits oil supplies to Europe.
A quick overview of the facts:
The growth of the European energy dependency rate does not promise anything good for the future. It can be summarised as follows:
No doubt the Belarus-Russia gas dispute, which has now turned into a real theat to European energy security, will dominate the headlines over the coming days. We will be tracking this story closely and look at how it changes European public opinion on energy supply strategies.
biomass :: bioenergy :: biofuels :: energy :: sustainability :: energy security :: energy dependency :: geopolitics :: fossil fuels :: Gazprom :: Transneft :: Belarus :: Russia :: European Union ::
A quick overview of the facts:
- Late december: Gazprom announces that it is raising gas prices for Belarus from US$47 per 1000m³ to US$105; if Belarus does not accept the new price, gas supplies will be cut off from January 1 onwards.
- Last-ditch talks result an agreement on Dec. 31, when Belarus accepts a price of US$100, but Belarussian president Lukashenko immediately announces retaliation
- Belarus is not in a strong economic or political position and uses the instrument of oil-transit taxes to punish Russia; on each ton of Russian oil that transits through Belarussian pipelines to Europe, a US$45 tax is imposed
- Russia refuses to pay the tax it deems to be illegal, upon which Belarus starts to siphon off oil as payment in kind for the duties
- Yesterday and today: Transneft, the state-run Russian pipeline monopoly, cuts off oil supplies to Belarus and therefor to Europe, and annouces it is working to find alternative routes; the cuts mainly affect Germany and Poland
- Germany and Poland study whether they must start tapping their strategic reserves, worth between 80 and 100 days of oil consumption
The growth of the European energy dependency rate does not promise anything good for the future. It can be summarised as follows:
- Oil: 22% of EU oil imports originate from Russia; 45% originate from the the Middle East; by 2030, 90% of EU oil consumption will have to be covered by imports
- Gas: 40% of EU gas imports originate from Russia (30% Algeria, 25% Norway); By 2030, over 60% of EU gas imports are expected to come from Russia with overall external dependency expected to reach 80%.
- Coal: By 2030, 66% of EU needs is expected to be covered by imports.
No doubt the Belarus-Russia gas dispute, which has now turned into a real theat to European energy security, will dominate the headlines over the coming days. We will be tracking this story closely and look at how it changes European public opinion on energy supply strategies.
biomass :: bioenergy :: biofuels :: energy :: sustainability :: energy security :: energy dependency :: geopolitics :: fossil fuels :: Gazprom :: Transneft :: Belarus :: Russia :: European Union ::
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