Apart from the uncertainty about Russia’s position, Van den Beukel points out that less energy is also being purchased from Russia. “Shipping companies do not want to transport Russian oil, banks and insurance companies stop payments and benefits. And there are companies and agencies that indicate that they will not conclude a new energy contract with the Russians.” This also drives up prices.
The fact that the United States announced this week that it would release one million barrels of oil from its own reserves, in the hope of pushing down the energy price for Americans, also indicates that alternative energy sources are not immediately available. They did this after the oil cartel told OPEC it would increase production further, but less than the declining countries had hoped.
Today, the 31 member states of the International Energy Agency announced that they join to the US plan. They too are going to release oil from their strategic stocks. It is not yet known how many barrels are involved.
Groningen?
When it comes to gas, gas extraction in Groningen is an option in the Netherlands, but there is little support for it. An alternative, for example, is the acceleration of a large Canadian project to produce more LNG gas, but that could only be delivered to Europe in six years’ time. “That is an expensive option,” says Sjak Lomme, an expert in energy trading. And that applies to more alternatives, they are expensive and take time.
Less sustainable options are now also coming into the picture for the short term. For example, the Belgian nuclear power station Tihange will remain open longer and the Onyx coal-fired power station on the Maasvlakte will remain longer in operation† Van den Beukel: “Now that gas is so expensive, you see a revival of coal. That is financially more advantageous.” But this also does not make up for the price increase.
What else can be done?
To mitigate the effects of rising energy and fuel prices, the government has already reduced excise duties on fuel. In the summer, the VAT on energy also decreases. “An absurd idea”, says Lomme. “Then you make it more attractive to use energy and refuel, while you expect a possible shortage.”
Chief economist of CBS Peter Hein van Mulligen emphasizes that it is about the sharp edges that are being removed: “If oil prices continue to rise, almost no reduction in excise duty can compete with that.”
High inflation can also behavioral change lead, says Van Mulligen, something we saw earlier during the oil crisis in the 1970s. And according to Lomme, that is also the solution. “I don’t understand why we haven’t been focusing on energy savings for months. For example, by raising the temperature of the central heating boiler from 80 to 50 degrees, much less energy is wasted. And you can influence that.”
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