Shell CEO Ben Van Borden has warned that Europe may have to limit access to energy this coming winter, as it predicts higher prices “significantly” if Russia continues to stifle gas supplies to the EU.
The head of Europe’s largest oil and gas company said the Russian president Vladimir Putin Showed that he was “capable and ready to arms energy supply” and that a complete suspension of Russian gas exports to Europe could not be ruled out.
“I think we will face a very difficult winter in Europe,” Van Borden Said at an energy conference in Oxford on Thursday.
“Maybe some countries will do better than others, but I think we will all face a significant escalation in pricing so that there will be a lot of pressure on the industry and therefore there will be a lot of pressure on the economy,” he added. “In the worst case, we’ll be in a situation where we’ll have to ration.”
Russia’s main gas pipeline to Germany Went offline For scheduled maintenance on Monday, which raises concerns that gas flow will not resume after repairs are completed.
Putin last week threatened “catastrophic consequences” for global energy markets if Western powers imposed further sanctions on Moscow over Russia’s invasion of Ukraine.
Other senior figures in the energy industry, including Fatah Birol, head of the International Energy Agency, have also warned Europe to prepare for the possibility of a complete shutdown of gas supplies from Russia this coming winter.
Birol told the Financial Times earlier this month that steps already taken by European countries to reduce gas demand, such as operating old coal-fired power plants, are justified by the scale of the crisis despite fears of rising carbon emissions. European countries should also look to keep aging nuclear power plants open and look for other ways to reduce demand, he added.
Van Borden said on Thursday that such measures, particularly the re-reliance on coal, would mean that Europe would have to “return” to its energy transition plans, at least initially.
“We will take a few steps back before we can take a few steps forward,” he said.
But he added that the fallout from Russia’s invasion of Ukraine was a wake – up call for policymakers that would ultimately help accelerate Europe’s energy transition to reduce dependence on imported fuels.
“We had enough ambition but this time I think we will have enough conviction,” he said.
Shell chief warns Europe may have to ration energy during winter Source link Shell chief warns Europe may have to ration energy during winter