The International Energy Agency (IEA) proposed a 10-point plan Mar. 3 on how the European Union can reduce its reliance on Russian natural gas imports by turning more to other suppliers and other energy sources while promoting more energy efficiency.
In the US, a parallel discussion has developed as members of Congress call for a ban on oil imports from Russia while the Biden administration worries about inflation impacts from such a ban.
The international and domestic proposals responded to the Russian invasion of Ukraine. Action is expected to come soon from the European Commission, which heads the administrative structure of the European Union.
Commissioner for Energy Kadri Simson, as part of the IEA announcement, issued a statement saying the European Commission will, in the week of Mar. 7, “propose a pathway for Europe to become independent from Russian gas as soon as possible. The IEA’s analysis outlines a number of concrete steps we can take.”
The IEA summarized its proposals with a statement saying, “The key actions recommended in the IEA’s 10-Point Plan include not signing any new gas contracts with Russia; maximizing gas supplies from other sources; accelerating the deployment of solar and wind; making the most of existing low emissions energy sources, such as nuclear and renewables; and ramping up energy efficiency measures in homes and businesses.”
In 2021, the European Union imported 155 billion cu m (bcm) of gas from Russia, accounting for around 45% of EU gas imports, the IEA said. The plan’s measures “could reduce the European Union’s imports of Russian gas by more than 50 bcm, or over one-third, within a year,” the agency estimated.
“Europe needs to act quickly to be ready to face considerable uncertainty over Russian gas supplies next winter,” said IEA Executive Director Fatih Birol.
US debate over imports
The US in 2021 imported 672,000 b/d of total petroleum from Russia, of which 199,000 b/d was crude oil, according to Energy Information Administration (EIA) data released Feb. 28.
Sen. Joe Manchin (D-W.Va.) on Mar. 1 urged the administration to ban the ongoing importation of Russian crude oil and petroleum products. “It is hypocritical for us to ask others to do what we can do,” he said, alluding to requests for Western Europe to cut Russian imports.
Manchin, Sen Lisa Murkowski (R-Alas.) and 16 other senators from both parties said Mar. 3 they would introduce a bill to ban Russian energy imports in the US. They scheduled introduction of the bill for later that day, with senators signing on to the bill in a rush as the introduction hour neared. A companion bill, also bipartisan, was to be introduced in the House.
Rep. Cathy McMorris Rodgers, the top Republican on the House Energy and Commerce Committee, called for a cutoff of Russian oil imports.
“We should not be buying a single barrel of oil from Russia right now,” she said March 2 on the Hugh Hewitt radio show. She said the oil was coming in through Massachusetts, Washington, California, Hawaii, and Alaska.
Asked if President Biden could stop the imports “today” with an executive order, she said, “Yes. If President Biden chose to do this, he could do it.”
Inflation fears, oil reserves
McMorris Rodgers offered her guess on why Biden does not block Russian oil imports: “He’s concerned about rising gas prices in America if he were to sanction Russian oil.”
That concern has been made clear by Biden and his media representatives, notably when White House Deputy Press Secretary Karine Jean-Pierre reacted Mar. 2 to a question about sanctioning Russian oil and gas.
“Given high oil and gas prices, cutting off Russian oil will drive prices up to Putin’s benefit,” Jean-Pierre said. She said the administration is “closely monitoring energy supplies for any disruption” as part of an effort “to protect American businesses and consumers, including from rising prices at the pump.”
The IEA announced Mar. 1 that the 31 member countries of the agency’s governing board agreed to release 60 million bbl of oil from their emergency reserves. It would be the equivalent of 2 million b/d for 30 days, the agency said.
In his State of the Union address the same day, Biden said the US would release 30 million bbl from its Strategic Petroleum Reserve as part of that plan.
“These steps will help blunt gas prices here at home,” Biden said.