ATLANTA: The global energy market has “roiled” in the face of rising prices amid the Russia-Ukraine conflict, according to US Energy Secretary Jennifer Granholm.
During an online briefing attended by Arab News on the eve of a two-day International Energy Agency ministerial meeting in Paris, she said the IEA will discuss ways to speed up a shift toward cleaner energy sources and reduce the reliance of European nations on Russian oil and gas.
Granholm described this as a “critical moment” for the US and other countries to take action to offset rising prices in energy markets resulting from disruptions to Russian oil supplies caused by international sanctions imposed in response to the war in Ukraine.
She said the “IEA stands in solidarity with the Ukrainian people” and that the US is taking coordinated action to release strategic energy reserves to help stabilize global markets.
“The US is exporting every molecule of liquefied natural gas that we can to alleviate supply issues in Europe,” Granholm added.
Russia is the world’s third-largest producer of oil after the US and Saudi Arabia, but it is the largest exporter of oil to global markets and the second-largest crude oil exporter after the Kingdom.
Any major disruption to Russian supplies therefore has a significant effect on prices, and many European countries depend on imported Russian oil and gas to meet their energy needs.
The US has imposed a domestic ban on Russian oil imports, but has left it up to European countries to make their own decisions about this and follow suit only if circumstances allow.
Gas prices in the US have already risen sharply due to the disruption in global oil supplies and uncertainty in the markets.
Granholm said the conflict in Ukraine has created challenges for the US and other Western countries.
Sources of clean energy should become a strategic choice that offers viable medium- and long-term solutions to such challenges, she added, pointing out that in addition to being reliable, diverse and affordable, clean energy can be the key to greater energy security and independence, as well as the answer to climate change.
During this week’s IEA meeting, ministers will discuss ways to speed up the transition to clean energy and to boost research and development in the sector, Granholm said.
She acknowledged that a transition to clean energy cannot happen overnight because Europe will remain dependent on Russian energy supplies for the foreseeable future.
But she said the IEA has developed a 10-point plan designed to reduce dependence on Russian oil by 2.7 million barrels per day within four months.