Russia cuts gas supplies to Netherlands and firms in Denmark and Germany

Gazprom raises stakes in sanctions war after EU move to embargo most Russian oil imports and companies miss deadline to pay in roubles

Russia has further cut off gas supplies to Europe, after state energy giant Gazprom turned off the taps to a top Dutch trader and halted flows to some companies in Denmark and Germany.

The intensification of the economic battle on Tuesday over Russia’s invasion of Ukraine follows the EU’s overnight decision to place an embargo on most Russian oil imports as part of its financial sanctions against the Kremlin.

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Could a cartel of large energy consumers cut oil and gas prices?

Italy’s PM Mario Draghi suggests big consumers club together to limit how much is paid and raises idea of EU gas price cap

Energy prices are skyrocketing as the world confronts the economic ramifications of Russia’s invasion of Ukraine, supply chain bottlenecks and the lingering effects of Covid-19 lockdowns. But Italy’s prime minister, Mario Draghi, has a plan.

The celebrated former European Central Bank president recently broached the idea of creating a “cartel” of oil consumers at a meeting with Joe Biden. Just as the biggest oil-producing nations club together through Opec to agree annual oil production quotas, Draghi has suggested big energy consumers join forces to increase their bargaining power.

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Loophole could let North Sea oil and gas giants slash UK windfall tax bill

Critics warn chancellor Rishi Sunak will raise only a fraction of planned £5bn if firms offset new investment against profits

North Sea oil and gas companies that already benefit from huge tax breaks could use fresh rules to slash how much they pay under a new windfall tax announced by Rishi Sunak as part of his £15bn cost of living package, according to a thinktank.

The chancellor risks raising a fraction of the £5bn he expects from the complex scheme – which allows the cost of new investments to be offset against profits – should oil and gas companies take the opportunity to dramatically reduce their contribution to the exchequer, said the left of centre Common Wealth.

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Consultant who ditched Shell: ‘take a look at yourselves in the mirror’

Caroline Dennett says she has been flooded with support after decision that has cost ‘around 60%-70% of my business’

Caroline Dennett’s eye was caught by a placard with two stark words: “insiders wanted”. The safety consultant was watching a video of Extinction Rebellion climate protesters who had glued themselves inside Shell’s headquarters in April and were encouraging employees to jump ship to aid its cause.

This week Dennett, who runs the independent agency Clout, released a bombshell video severing ties with Shell after an 11-year business relationship. She emailed 1,400 Shell employees and accused the £177bn behemoth of causing “extreme harms” to the environment and having a “disregard for climate change risks”.

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José Ramos-Horta accuses Alexander Downer of ‘distorting’ issues around 2004 Timor-Leste bugging

Exclusive: President of south-east Asian nation says Australia used cover of ‘supposedly altruistic foreign aid program’ to spy on behalf of oil companies

The president of Timor-Leste, José Ramos-Horta, has accused former foreign affairs minister Alexander Downer of “avoiding and distorting” the issues around the 2004 bugging scandal, saying recent comments ignored the fact that Australia had spied “on behalf of oil companies and using the cover of Australia’s supposedly altruistic foreign aid program”.

On Thursday, Downer appeared on the ABC’s Q&A program and was questioned about the 2004 Australian Secret Intelligence Service mission to bug Timor-Leste’s government during sensitive talks to carve up oil and gas reserves in the Timor Sea.

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Shell consultant quits, accusing firm of ‘extreme harms’ to environment

Caroline Dennett tells staff in video she made decision because of ‘double-talk on climate’

A senior safety consultant has quit working with Shell after 11 years, accusing the fossil fuel producer in a bombshell public video of causing “extreme harms” to the environment.

Caroline Dennett claimed Shell had a “disregard for climate change risks” and urged others in the oil and gas industry to “walk away while there’s still time”.

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Unite union seeks talks with Sturgeon over Grangemouth refinery

Union says oil refinery’s ‘strategic importance’ means talks about possible threats are urgent

Trade union bosses are seeking an urgent meeting with Scottish first minister Nicola Sturgeon amid uncertainty surrounding the future of the Grangemouth oil refinery.

Grangemouth is one of just six oil refineries in Great Britain and supplies two-thirds of the petrol and diesel for forecourts in Scotland as well as large volumes for the north of England and Northern Ireland.

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Boris Johnson says windfall tax ‘not the right thing’ but refuses to rule out U-turn

The prime minister claimed ‘these kinds of taxes’ deterred investment, contrary to BP boss saying it would not

Boris Johnson has refused to rule out the introduction of a windfall tax which would help to relieve pressure on the cost of living crisis.

Speaking to LBC’s Nick Ferrari, Johnson said that while he believed a disadvantage of windfall tax would be the impact it would have on investment, the prospect of such a taxwas still something to be looked at.

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European Council president ‘confident’ of imminent sanctions on Russian oil

Pivot by Germany bolsters support for phased-in import ban as Charles Michel says goal is to ‘break Russian war machine’

The aim of EU sanctions is to “break the Russian war machine”, with measures on Kremlin oil now imminent, the president of the European Council has said, as Germany pivoted to back the move.

A proposal to phase in a prohibition on Russian oil imports will be discussed by member state ambassadors in Brussels on Wednesday, with the most dependent, such as Slovakia and Hungary, seeking exemptions.

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BP profits soar to $6.2bn amid calls for energy windfall tax

Company beats forecasts thanks to high oil and gas prices but is hit by offloading its stake in Russia’s Rosneft

BP’s profits more than doubled to $6.2bn (£5bn) in the first three months of the year, boosted by soaring oil and gas prices.

It was well ahead of the $4.5bn of expected by analysts and is likely to revive calls for a windfall tax on oil and gas companies from Labour and the Liberal Democrats, who argue the money raised could be used to ease the burden for those hardest hit by the cost of living costs.

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Kwarteng and Sunak at odds over windfall tax on oil and gas profits

Government sources play down idea of cabinet split as business secretary quashes idea recently mooted by chancellor

Government sources have played down the idea of a cabinet split over a possible windfall tax on energy companies as the business secretary, Kwasi Kwarteng, firmly quashed the idea, days after it was mooted by the chancellor.

In a search for solutions to a crisis over energy prices, and the cost of living more widely, Rishi Sunak said a windfall tax, as advocated by Labour, was possible if energy companies did not properly reinvest bumper profits.

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Rishi Sunak hints at U-turn on UK oil and gas windfall tax

The chancellor says nothing is off the table but fellow Tory ministers remain dismissive of idea

Rishi Sunak has opened the door to a windfall tax on oil and gas companies despite previously dismissing the policy, as Labour accused the government of burying its head in the sand over spiralling bills.

The chancellor hinted at a possible U-turn on a tax on oil and gas providers, after repeatedly refusing to countenance the idea in the past when suggested by Labour and the Lib Dems.

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‘It’s a media war’: the UK’s top anti-oil campaigner fights on aged 80

In 50 years, Canvey Island’s George Whatley has won five victories against oil and gas firms trying to expand operations

George Whatley is probably Britain’s most successful anti-oil campaigner, but you won’t find him at Extinction Rebellion’s latest wave of protests or the Just Stop Oil campaign which has blocked fossil fuel infrastructure recently.

At 80 years old and after a recent spell in hospital, he will be taking it easy at his bungalow on Canvey Island, Essex. But if anyone can claim a place in the annals of successful environmental protests, it is this former Bank of England security guard.

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Germany will stop importing Russian gas ‘very soon’, says Olaf Scholz

Chancellor declines to endorse claim by Boris Johnson during London visit that goal will be achieved by mid-2024

The German chancellor, Olaf Scholz, has said his country is doing all it can to wean itself off Russian energy, but declined to endorse a claim by Boris Johnson that it would stop importing Russian gas by the middle of 2024.

Scholz said only that the goal would be achieved very soon, and that Germany would stop using Russian coal by the summer and Russian oil by the end of the year.

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Minister rules out energy rationing in UK despite Ukraine crisis

Grant Shapps says invasion is ‘wake-up call’ but onshore wind plan seems to have been scaled down

A cabinet minister has rejected calls for the UK to consider rationing energy, as a plan to drastically increase onshore wind power also appeared to be significantly scaled back.

The transport secretary, Grant Shapps, said Russia’s invasion of Ukraine had been a “massive wake-up call” for western nations about their dependence on imported oil and gas, which European countries are now trying to wean themselves off.

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EU leaders wrangle with issue of oil and gas imports from Russia at summit

Poland and Baltic states seek embargo, while other countries including Germany and Belgium want gradual measures

European Union leaders have laid bare their differences over whether to stop buying oil and gas from Russia, following a show of transatlantic unity in a series of summits with Joe Biden and an impassioned appeal by the Ukrainian president, Volodymyr Zelenskiy, for more military aid to defend his country.

In the third summit on a hectic day of diplomacy that began with an emergency meeting of Nato leaders, followed by the G7, EU leaders met the US president to discuss Russia’s war against Ukraine.

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After Ukraine, how will the world replace Russia’s oil products?

A report from the International Energy Agency makes clear that viable alternatives are limited

As Boris Johnson flew to the Gulf this week to ask for more oil to replace supplies from Russia, he was accused by the Labour leader, Keir Starmer, of “going cap in hand from dictator to dictator”.

At the same time, a report produced by the International Energy Agency (IEA) underlined just how limited the options are for any economy seeking to replace Russian crude and other oil products.

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Car-free Sundays? IEA sets out 10-point plan to reduce global oil demand

Energy watchdog says measures could help cut oil usage by 2.7m barrels a day within four months

Driving more slowly, turning down the air-conditioning, car free Sundays and working from home should be adopted as emergency measures to reduce the global demand for oil, according to a 10-point plan from the International Energy Agency (IEA).

Such measures and changes to consumer behaviour would allow the world to cut its oil usage by 2.7m barrels per day (bpd) within four months – equivalent to more than half of Russia’s exports – the global energy watchdog said.

Reduce speed limits on highways by at least 10 km/h
Saves about 290,000 bpd of oil use from cars, and an additional 140,000 bpd if trucks also reduced their speed.

“A reduction in speed limits can be implemented by national governments; many countries did so during the 1973 oil crisis, including the United States and several European countries,” the IEA said.

Work from home up to three days a week where possible
One day a week saves about 170,000 bpd; three days saves about 500,000.

Pre-pandemic, the use of private vehicles to commute was responsible for about 2.7m barrels of oil use a day, the IEA said, yet about one-third of those jobs could be done from home.

Car-free Sundays in cities
Every Sunday saves about 380,000 bpd; one Sunday a month saves 95,000.

Switzerland, the Netherlands and West Germany did this during the 1973 oil crisis and some cities have used the measure to promote public health more recently. Benefits include cleaner air, reduced noise pollution and improved road safety, the IEA report said.

Make public transport cheaper and incentivise walking and cycling
Saves about 330,000 bpd.

New Zealand is halving public transport fares for the next three months in response to high fuel prices, while studies in the US have shown cheaper fares lead to greater use. Some governments have incentivised people to walk or subsidised bike purchases. All of this would require government subsidy.

Alternate private car access to roads in large cities (eg every other day)
Saves about 210,000 bpd.

For example, cars whose number plate ends with an odd number can drive on Monday and those with an even number can drive on Tuesdays. Such schemes have been deployed to tackle congestion and air pollution peaks in Athens, Madrid, Paris, Milan and Mexico City. Exceptions could be made for electric vehicles. One downside is that households with multiple cars could game the rules.

Increase car sharing and adopt practices to reduce fuel use
Saves about 470,000 bpd.

Carpooling has long been used as a way to save money and reduce emissions. Governments can incentivise this with dedicated traffic lanes and parking spaces, or by reducing road tolls on higher occupancy vehicles. Many smartphone apps exist to arrange ride-shares.

Promote efficient driving for freight trucks and delivery of goods
Saves about 320,000 bpd.

As with private cars, freight trucks can be driven more efficiently, including the use of so-called “eco-driving” techniques such as reducing excess weight and not slowing down or speeding up abruptly. Loads should also be optimised to avoid journeys with empty vehicles.

Using high-speed and night trains instead of planes
Saves about 40,000 bpd.

Based on existing high-speed rail infrastructure, about 2% of flights in advanced economies could be shifted to trains, according to the IEA. Almost all of this involves flights of less than 800km.

Avoid business air travel where alternative options exist
Saves about 260,000 bpd.

The IEA recommends virtual meetings where possible and points out that firms such as HSBC, Zurich Insurance and S&P Global plan to cut their business travel emissions by as much as 70%.

Reinforce the adoption of electric and more efficient vehicles
Saves about 100,000 bpd.

By the end of last year, 8.4m electrical vehicles (EVs) were on the road in advanced economies but the IEA urged faster adoption. “Actions taken now to hasten the adoption of electric vehicles will have a sustained effect in the future,” it said.

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Boris Johnson plans Saudi Arabia visit to seek oil supply increase

MPs voice deep concerns over trip after mass execution by regime and its continuing role in Yemen war

Boris Johnson is facing scrutiny over a planned trip to Saudi Arabia to push for an increase in oil output amid an outcry over the regime’s biggest ever mass execution and growing fears the prime minister may try to limit media scrutiny of the visit.

Downing Street would not confirm Johnson’s likely trip to Riyadh, but sources have said he wants to appeal to the Gulf state to increase its oil output to replace supplies from Russia.

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White House faces oil standoff with Saudi Arabia and UAE as prices soar

Analysis: Disputes with Biden administration mean Riyadh and Abu Dhabi are likely to drive hard bargain

Joe Biden’s hardline stance on Russia has won him widespread plaudits, but with the most serious oil shock in decades now a reality, the US president’s attempt to cushion the blowback continues to meet resistance from the two allies he needs most.

Saudi Arabia’s de facto leader, Mohammed bin Salman, and his counterpart in the United Arab Emirates, Mohammed bin Zayed, are yet to agree to a phone call with the west’s most powerful man – a scenario all but unthinkable during previous administrations.

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