Eu energy commissioner warns of impending diesel and jet fuel shortages
Energy Commissioner Dan Jørgensen warned of potential diesel and jet fuel shortages due to reliance on the Middle East during an EU energy ministers’ emergency meeting.
Energy Commissioner Dan Jørgensen warned that diesel and jet fuel shortages could occur due to reliance on the Middle East, signalling a critical concern for EU energy stability.
“The question isn’t if we need them or not — we clearly do,” stated Nareg Terzian, emphasising the necessity of untapped oil resources for the EU.
Key developments
The EU27 heightened its alert level after Energy Commissioner Dan Jørgensen highlighted potential diesel and jet fuel shortages stemming from Middle Eastern supply reliance during an emergency ministers’ meeting on March 31.
The bloc has around 100 million barrels in emergency oil reserves, with roughly 92 million already deployed in response to the International Energy Agency’s coordinated release. Major holders include France with 120 million barrels, Germany at 110 million, and Italy with 76 million.
Energy analysts project that the released reserves can sustain current levels for approximately five months. However, they warn of a looming shortfall of around 2 million barrels per day, stressing the finite nature of available buffers.
How long can the EU’s oil reserves last?
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The level of alert across the EU27 intensified when Energy Commissioner Dan Jørgensen shifted the focus from a pricing issue to a potential supply disruption following an emergency meeting of energy ministers on March 31.
The Danish Commissioner told EU governments that diesel and jet fuel were at greater risk of shortages due to reliance on the Middle East, warning of a “potential prolonged conflict” and calling for “unity among EU countries”.
The bloc has emergency oil reserves of around 100 million barrels, typically a blend of crude oil, diesel, and gasoline, of which roughly 92 million were released on March 11 as part of the International Energy Agency’s coordinated release of 400 million barrels.
Oil reserves and storage as buffers
France (120 million barrels), Germany (110 million barrels) and Italy (76 million barrels) are the major EU holders, according to EU data.
Energy analysts estimate that the released oil reserves currently in use can last around 5 months.
Storage and domestic reserves
Additionally, EU storage currently holds 270 million barrels of crude oil, according to Kpler, roughly enough for three weeks of consumption, after being refined into diesel, gasoline or jet fuel.
Strategic reserves and inventory drawdowns are currently doing much of the remaining adjustment, supporting around 6 million barrels per day of demand, the independent economic advisory firm Oxford Economics said.
However, analysts warn that these buffers are finite and become less effective over time, forecasting a shortfall of around 2 million barrels of oil per day.
While the 2022 energy crisis mostly affected natural gas imports, after the bloc abruptly lost 40% to 45% of its Russian fuel, the situation is becoming increasingly difficult as a major oil shortage now takes hold.
The bloc’s current predicament prompted the oil industry to recall roughly 4 billion barrels of untapped oil resources across Europe, according to the International Association of Oil and Gas Producers (IOGP).
“The question isn’t if we need them or not — we clearly do. The real choice is whether we produce them at home or import more from abroad,” Nareg Terzian, IOGP Europe’s head of strategy and communications, told EU News.
Terzian suggested these unexplored resources are a “safety net at the EU’s disposal” alongside the bloc’s continued efforts to electrify and improve energy efficiency, through building insulation and technologies that help reduce energy consumption.
“Aside from the historical North Sea and onshore fields, a lot more could be discovered in relatively new exploration areas such as the Eastern Mediterranean and the Black Sea,” Terzian added.