IEA Releases Plan To Cut Oil Use By 2.7 Million Bpd

The International Energy Agency has released a 10-point plan aimed at reducing global oil consumption by as much as 2.7 million barrels daily.

The focus of the measure that the IEA has put forward is on transportation.

Measures include encouraging carpooling on inter-urban journeys and the use of alternative modes of transportation such as trains and bicycles.

Boosting fuel efficiency by changing driver habits in the freight transport industry is also among the ideas that the IEA is suggesting in a bid to cut oil consumption. So is the idea of reducing speed limits on highways to reduce fuel consumption.

According to the agency, some 290,000 bpd in oil demand could be eliminated by reducing speed limits on highways. Another half a million barrels daily of oil could be saved if more people adopt a hybrid work model, staying at home for up to three days a week.

Yet another 380,000 bpd of oil consumption could be saved, according to the IEA, if large cities ban cars for one day a week. This has been done before, the agency noted in its report, and it has had the added benefit of stimulating the use of alternative, non-polluting, and non-oil-consuming means of transportation such as bicycles and walking.

Lowering public transport prices is also among the measures proposed by the IEA, which noted some cities have done this and have seen increased use of public transport at the expense of private car transport. Encouraging people to walk more instead of driving is also among the ideas of reducing oil consumption. As a result, the IEA says, some 330,000 bpd in oil could be saved.

Increased adoption of EVs is also on the list, with the IEA noting that currently, there are supply chain problems that are affecting the uptake of electric vehicles. To address this, the IEA has proposed “facilitating logistical coordination to shore up flows of materials and components.”

“As a result of Russia’s appalling aggression against Ukraine, the world may well be facing its biggest oil supply shock in decades, with huge implications for our economies and societies,” said IEA Executive Director Fatih Birol.

“IEA Member Countries have already stepped in to support the global economy with an initial release of millions of barrels of emergency oil stocks, but we can also take action on demand to avoid the risk of a crippling oil crunch,” Dr Birol said. “Our 10-Point Plan shows this can be done through measures that have already been tested and proven in multiple countries.”

“France and all European countries must get out of their dependence on fossil fuels, in particular on Russian fossil fuels as soon as possible,” Minister Pompili said.

“It is an absolute necessity, for the climate but also for our energy sovereignty. The plan proposed today by the IEA offers some interesting ideas, some of which are in line with our own ideas to reduce our dependence on oil.”

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Source: Oilprice.com