IEA Proposes Energy-Saving Measures to Mitigate Global Economic Impact
Moscow (ANTARA) - The International Energy Agency (IEA) on Friday proposed a package of demand management measures to dampen the economic impact from oil supply disruptions following the blockade of the Strait of Hormuz.
The IEA detailed 10 demand-side options that households, businesses, and governments can implement to protect themselves from the current oil price shocks and reduce pressure on affordability… Most of these options relate to fuel consumption in land transportation, but they also include fuel use for air transportation, cooking, and industry, as stated in the report.
The conflict around Iran has caused the largest oil supply disruption in history, as the Strait of Hormuz - through which around 20 percent of global oil exports typically pass - is practically closed, according to the IEA.
This situation has pushed crude oil prices above $100 per barrel and triggered sharper increases in prices for derivative products such as diesel, aviation fuel, and liquefied petroleum gas (LPG).
In this context, the IEA proposes implementing remote working where possible, reducing speed limits on highways by at least 10 kilometres per hour, and encouraging the use of public transport to save petrol consumption.
The IEA also considers staggered use of private vehicles and increased car-sharing practices as effective steps. Other measures include optimising commercial transportation and reducing business air travel.
The agency also proposes redirecting LPG use from the transportation sector to more critical sectors like cooking, while deeming petrol more appropriate for vehicles.
To curb LPG use in cooking activities, the IEA encourages the adoption of electric stoves and other modern cooking methods.
Additionally, the IEA recommends optimising oil use in the petrochemical industry, which accounts for about two-thirds of industrial sector oil demand.
The IEA adds that industrial facilities can save fuel in the short term through maintenance checks and more efficient equipment operation, including shutting them down when not in use.