IEA Issues Ten-Point Plan to Reduce Global Oil Use

Source: Energycapitalpower

To address an impending global energy crisis caused by Russia’s invasion of Ukraine, the International Energy Agency (IEA) has introduced a ten-point plan to reduce global oil demand by up to 2.7 million barrels of oil per day (bpd) in four months, while promoting the sustainable use of oil in the long run.

Due to the conflict, analysts are predicting the price of oil to skyrocket even further than the $129 per barrel hike seen in March 2022, adversely affecting consumers worldwide. To mitigate the negative impact felt in the short term, and to ensure consumption is placed on a decline that aligns with net-zero emissions by 2050 targets, the IEA has proposed a ten-point plan to reduce global oil demand.

The 10-point plan comprises the reduction of speed limits on highways by 10km per hour, whereby an estimated 290 000 barrels per day (bpd) of oil use can be saved from motor cars and 140 000 bpd from heavy trucks; working from home, with up to 500,000 bpd estimated to be saved with people working three days from home per week; car free Sunday’s in cities, which could save 95,000 bpd over a period of one month; ensuring public transport is cost-effective, saving around 300,000 bpd; and limiting private car access in large cities, whereby 210,000 bpd could be saved.

Additionally, the plan comprises increasing carpooling, which could save an estimated 470,000 bpd; promoting efficient driving regarding freight trucks, with eco-driving estimated to save up to 320,000 bpd in the short term; the utilization of high speed and night trains rather than air travel, which could reduce oil used in the short term by 40,000 bpd; avoiding air travel and utilizing alternative modes of transport, which could reduce usage by 260,000 bpd globally; and finally, reinforcing the adoption of electric vehicles, which could save a further 100,000 bpd.

In addition to oil consumption reduction, the plan would open up job creation, skills transfer, and technology development opportunities, as well as new industries such as electric mobility.

Source: Energycapitalpower

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