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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What would increasing Saudi Arabian oil production mean for the climate?

Explainer: Boris Johnson has asked Saudi Arabia to pump more oil; what implications would this have?

Why are Saudi Arabia and the United Arab Emirates being asked to pump more oil?

Western powers are looking for ways to keep the pressure on Russia during its invasion of Ukraine. Some countries have committed to phasing out Russian oil and gas, while others are still investigating ways of doing this. Saudi Arabia is one of a number of countries, along with Venezuela and Iran, that might be able to plug the gap in oil production.

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Philippines considers four-day working week to combat rising costs

Economist calls for compressed working hours with 10-hour days in response to higher fuel prices

The Philippines is considering a four-day working week to conserve energy, as the cost of fuel continues to rise globally, driven by Russia’s invasion of Ukraine.

Officials are searching for ways to soften the impact of dramatic price increases, which have prompted calls for a rise in the minimum wage and greater assistance for drivers.

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Boris Johnson upbeat on Saudi oil supply as kingdom executes three more

PM accused of ‘trading blood for oil’ as he seeks increased Middle East output to lessen reliance on Russia

Boris Johnson has hinted Saudi Arabia could speed up oil production to help calm spiralling energy prices for Britons, as he praised the country for improving its human rights record despite three more people being executed during his visit.

With pressure rising at home over a cost of living crisis compounded by western countries trying to end their reliance on Russian imports, the UK prime minister made a dash to the Middle East to urge leaders to help stabilise oil prices by ramping up supply.

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Boris Johnson going ‘from dictator to dictator’ for oil, says Starmer

Labour leader warns about replacing dependence on Russia with reliance on Saudis, as PM prepares for Gulf visit

Keir Starmer has accused Boris Johnson of “going cap in hand from dictator to dictator,” as the prime minister prepares to fly to Saudi Arabia to seek alternatives to Russian oil supplies.

Johnson has a personal relationship with the Saudi leader, Mohammed bin Salman, and government sources suggest he could help persuade the Saudis to increase oil production. The prime minister defended the trip on Tuesday, saying he had to build a coalition of countries to help the west reduce its dependence on Vladimir Putin, likening the Russian leader to a drug dealer who had got the west hooked on his hydrocarbons.

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Johnson compares Putin to drug dealer ahead of Saudi Arabia trip

British PM hopes to persuade Gulf state to raise oil and gas production to reduce reliance on Moscow

Boris Johnson has compared Vladimir Putin to a drug dealer who managed to hook western nations on Russian supplies of oil and gas, ahead of a trip to the Middle East in an attempt to diversify the sources of Britain’s energy imports.

The UK prime minister urged European countries to “get ourselves off that addiction” and said he wanted support from “the widest possible coalition” to help offset the pressures caused by spiralling oil and gas prices.

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Oil price falls below $100 amid Russia-Ukraine ceasefire talks

Drop in price comes as Covid-19 infections rise in China, which could hit demand for energy supplies

Global oil prices have fallen back below $100 (£77) a barrel amid ceasefire talks between Russia and Ukraine and concerns over the rapid growth in Covid infections in China.

The price of a barrel of oil slid to $99 on energy markets on Tuesday, before rising back to just above $100 in early afternoon trading. It comes amid a decline from a 14-year high of close to $130 reached earlier this month after Vladimir Putin ordered troops into Ukraine.

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Johnson faces uphill task to convince Saudis and UAE to boost oil production

Analysis: PM will try and succeed where Biden failed but is unlikely to get a sympathetic hearing

Boris Johnson is facing criticism both domestically and in the Gulf as he tries to persuade Gulf states to boost oil production.

He is expected to visit Saudi Arabia and other Gulf states such as the United Arab Emirates as western powers seek extra oil supplies to loosen the west’s dependence on Russian energy and slow the massive price rises caused by sanctions due to the war in Ukraine.

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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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Turbulent times: Australian air fares predicted to soar as bans on Russian oil lift jet fuel prices

Qantas chief says airlines have no choice but to increase prices and believes travel will be impacted

Travellers are facing steep air fare hikes as bans on Russian oil cause jet fuel prices to surge, Australian aviation experts warn.

Qantas chief executive, Alan Joyce, has said the average fare would increase by 7% as a result of the increased crude oil prices following Russia’s invasion of Ukraine, but others predict the price rises could be higher.

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Venezuela releases two Americans in effort to improve relations amid energy crisis

Citgo’s Gustavo Cárdenas and Jorge Fernández released Tuesday while US representatives visited Caracas over the weekend

Venezuela has released two jailed Americans as the two countries seek to improve relations amid an energy crisis caused by Russia’s war in Ukraine.

Gustavo Cárdenas, an executive with US oil refining company Citgo was released on Tuesday night, along with Jorge Fernández, who was arrested last year on terrorism charges the White House described as “spurious”.

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Russia-Ukraine war latest: strike on children’s hospital ‘ultimate evidence that genocide is happening’ – Zelenskiy

Ukrainian president calls bombing in Mariupol ‘beyond atrocity’ and urges world to ‘stand united in condemning Russia for this crime’

The New York Times will have no reporters on the ground in Russia for the first time in a century after the news organisation joined those pulling out of the country.

Russian authorities made reporting from the country impossible when it recently criminalised the act of describing Russia’s invasion of Ukraine as a “war” with those who commit the offence facing up to 15 years in prison.

As a result Russian media outlets have been forced to close, while global news organisations have pulled out their teams owing to the risk of arrest.

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Stranding of three whales in Corfu raises alarm over seismic testing for fossil fuels

While cause remains unconfirmed, green groups fear the three whales could be the ‘tip of iceberg’ with many more animals hurt

Environmental groups have linked the beaching of three whales in Corfu to seismic testing for oil and gas in the waters off the Greek island.

Two Cuvier’s beaked whales were found stranded at Arillas and Agios Gordios beaches on the west of the island on 20 February. A third beaked whale ran ashore on Agios Gordios beach the day after.

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Saudi Arabia and UAE leaders ‘decline calls with Biden’ amid fears of oil price spike

The Gulf nations have capacity to pump more oil to ease supply fears but relations with the US have chilled under Biden

The de-facto leaders of Saudi Arabia and the United Arab Emirates have declined to arrange calls with US president Joe Biden in recent weeks as the US and it allies have sought to contain a surge in energy prices caused by Russia’s invasion of Ukraine.

According to the Wall Street Journal, citing Middle East and US officials, both Saudi Crown Prince Mohammed bin Salman and the UAE’s Sheikh Mohammed bin Zayed al Nahyan have been unavailable to Biden after US requests were made for discussions.

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Biden bans Russian oil imports in response to Ukraine invasion – as it happened

Joe Biden said he is issuing this ban on Russian oil imports after “close consultation with our allies, especially in Europe”. He said the American people must understand that many of our European partners will not be able to join the US, a net exporter of energy, in this ban.

“We can take this step when others cannot, but we are working closely with Europe and our partners to develop a long term strategy to reduce their dependency on Russian energy as well,” he said.

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Nickel soars to record $100,000 a tonne as risk of shortages from Russia rises – business live

Rolling coverage of the latest economic and financial news

The oil price has opened higher too, with Brent crude up 2% at $125.70 per barrel.

Yesterday, Brent spiked alarmingly to $139 per barrel, a 14-year high, after the US said it was talking to its European allies about potentially banning Russian oil imports. It then slipped back, as Germany’s Olaf Scholz pushed back against the idea.

“This is the tightest fundamental backdrop in years and the developments in Russia/Ukraine have ignited a market that was already a coiled spring. How high can oil prices go? Pick a number, this is a market in disarray.

Market fundamentals are the strongest in at least 15 years… it is not unfathomable for prices to rocket to $200/bbl by summer, spur a recession and end the year closer to $50/bbl ($200 call options have been bid). To be clear, this is not our base case, but such a scenario does not sound implausible today. Two weeks ago, such a notion would have been ludicrous.”

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Democrats and Republicans agree on plan to suspend trade relations with Russia and Belarus – live

Federal prosecutors were expected to make closing arguments today in the first jury trial of someone charged with joining in the 6 January attack of the US Capitol.

Guy Reffitt of Texas, the first of some 750 people charged with joining the riot to face trial in Washington, has been charged with carrying a semi-automatic handgun while on Capitol grounds and obstructing justice by threatening his children with harm if they reported him to authorities.

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Biden criticized over report of planned Saudi trip to discuss global oil supply

White House refuses to confirm that top advisers considering spring Saudi Arabia visit to propose increase in oil exports

Joe Biden attracted criticism from both progressives and Republicans after a report indicated the White House was planning a visit to Saudi Arabia to discuss global oil supply.

Axios reported on Sunday that Biden’s senior advisers were considering a spring trip to Saudi Arabia in an effort to improve relations and to propose a potential increase in oil exports.

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