Europe Is Haunted By Lack Of Oil And Gas, Russia Will Be The Solution

Illustration of oil and gas mines. (Unsplash-Zbynek Burival)

JAKARTA - Europe will not be able to completely abandon energy resources from Russia. There will be time for countries, especially in Western Europe, to continue working together to get supplies of Russian natural resources.

This was said by energy expert and Deputy chairman of the S&P GlobaCommodity Insights, Dave Ernsberger, on the sidelines of the International Energy Market Forum conference, held in Fujairah, United Arab Emirates, recently.

"I think there will always be a natural interest in Russian oil and gas in Western Europe, a market-driven interest. <...> I imagine there will be a time when the flow will return, but maybe not at a previous level, because there has actually been a substitution that may be more permanent," he told Tass.

Ernsberger views European countries as potentially experiencing a stagnant energy supply in the future and will drop offers to buy oil and liquefied natural gas at soaring prices.

The loss can be minimized if it buys energy supplies from a closer country, namely Russia.

"The source of alternative supply is not Russian oil and gas originating from the US, the Middle East, from a much further place, and not sent via pipelines, but sent via tankers, and in general, this supply is more expensive and easier to cut off," he said.

Ernsberger believes that Europe's gradual transition from Russia's energy supply, not only driven by the breaking of hostilities in Ukraine, but also by recognition of the need for diversification of supply sources after the events in 2021.

In 2021, European countries are known to face a crisis amid low reserves in underground gas storage facilities following the withdrawal of winter fuels and a shortage of energy due to a decline in wind field production.