Basket Village USA
CERAWeek: Energy security front and center as Ukraine crisis causes supply shortage – Reuters
HOUSTON, March 8: Leaders of a U.S. energy conference are expected to focus on renewable energy and the long-term shift away from fossil fuels on Tuesday, even as the West seeks to immediately replace Russian oil supplies and gas after Moscow invaded Ukraine, according to Reuters
The CERAWeek energy conference in Houston opened Monday with crude prices at levels not seen since 2008, focusing on how to reduce dependence on Russia, one of the world’s largest oil and gas exporters which now faces increasingly stringent Western sanctions.
The United States, which has held talks with allies on banning Russian oil imports, is expected to announce it will go ahead with such a step without Europe, sources said. U.S. retail gasoline prices hit a new high early Tuesday, and Brent crude was recently at $129 a barrel.
Tuesday’s panels from CERAWEEK, which was to focus on the energy transition, feature discussions on renewable energy and electric vehicles, which still make up a small percentage of the global car fleet, even as production increases rapidly.
Saudi Aramco chief executive Amin Nasser is expected to speak, although it is unclear whether he will address global crude supply issues.
Saudi Arabia, the world’s biggest crude exporter, is the de facto leader of the Organization of the Petroleum Exporting Countries, which has an alliance with Russia and others. The group known as OPEC+ has gradually rolled back production cuts.
Washington and other consumers have been pushing for a faster increase in OPEC+ production, but the group has limited spare capacity to produce more and some OPEC+ members are already struggling to hit targets. existing production quotas.
OPEC Secretary General Mohammad Barkindo said geopolitics dominates oil price movements and while a tight market has created some demand destruction, “the other side of the equation is probably more critical right now, i.e. supply is lagging further and further.”
On Monday, OPEC officials met with executives from U.S. shale oil companies on the sidelines of the conference.
Some buyers shunned Russian oil and gas exports to avoid getting entangled in sanctions, creating a major supply disruption. Russia exports 4-5 million barrels per day of crude and 2-3 million bpd of products.
Renewable energy proponents say Russia’s invasion of Ukraine should spur the transition to cleaner fuels and say more investment in oil and gas, under any circumstances, would increase reliance on fossil fuels and accelerate climate change.
