The new energy crisis triggered by the Middle East conflict could hurt European consumers and industries for years, European Commission President Ursula von der Leyen said on Wednesday.
“Our shared goal is now to see a lasting end to the war,” von der Leyen told the European Parliament in a speech today.
“But there is also a harsh reality we all need to face: the consequences of this conflict may echo for months or even years to come. This is why energy was on top of the informal EUCO’s agenda,” the Commission President added.
The crisis caused by the Iran war is the second Europe is facing in just four years, in a sobering lesson for the EU that “we simply cannot be overdependent on imported energy,” von der Leyen told the European lawmakers.
The Commission has estimated that in just 60 days of conflict, the EU’s bill for fossil fuel imports has jumped by $31.6 billion (27 billion euros), without a single molecule of additional energy, she added.
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“So the way forward is obvious, we must reduce our overdependency on imported fossil fuels and boost our home-grown, affordable, clean energy supply. From renewables to nuclear, in full respect of technology neutrality,” von der Leyen said.
The Commission last week unveiled proposals aimed at reducing dependence on natural gas, coordinating gasoline, diesel, and jet fuel supplies, and accelerating renewable energy capacity installations.
The new measures are designed to offer immediate relief to households and industries while addressing long-term dependencies, such as on gas for power generation.
As a large part of the Middle Eastern oil and fuel supplies remains trapped at the Strait of Hormuz, the EU is accelerating coordination among all member states to ensure the availability of jet fuel and diesel, including the availability of oil refinery production capacities.
The Commission sees the Middle East crisis as “a wake-up call and a turning point – when Europe steps away from fossil fuel dependence, and steps towards clean energy autonomy,” Dan Jørgensen, European Commissioner for Energy and Housing, said last week.
By Michael Kern for Oilprice.com
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