Work from home, public transport part of solution amid oil crisis due to West Asia conflict: IEA

Work from home, greater use of public transport, better driving practices, lesser air travel, shifting bi-fuel and converted vehicles from LPG to gasoline are some of the options suggested by Paris-headquartered International Energy Agency (IEA) in the wake of the economic impacts on consumers of the disruptions to oil markets stemming from the war in the Middle East.

The conflict has triggered the largest supply disruption in the history of the global oil market, with shipping through the Strait of Hormuz, which normally carries around 20 per cent of global oil consumption, reduced to a trickle. Around 20 million barrels per day of crude oil and oil products typically transit the Strait of Hormuz. The loss of these flows has tightened markets significantly, pushing crude oil prices above $100 per barrel and driving even sharper increases in refined products such as diesel, jet fuel and liquefied petroleum gas (LPG).

Restoring transit through the Strait of Hormuz remains essential to stabilise global energy markets. In the meantime, countries are acting on both supply and demand.

“The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market. In the absence of a swift resolution, the impacts on energy markets and economies are set to become more and more severe,” said IEA Executive Director Fatih Birol, in a press statement.

The new IEA report identifies ten measures that can be implemented quickly by governments, businesses and households. These actions focus primarily on road transport, which accounts for around 45% of global oil demand, but also cover aviation, cooking and industry.

Widespread adoption, where possible, would amplify their global impact and help cushion the shock.

IMMEDIATE ACTIONS

1. Work from home where possible

2. Reduce highway speed limits by at least 10 km/h

3. Encourage public transport

4. Alternate private car access to roads in large cities on different days

5. Increase car sharing and adopt efficient driving practices

6. Efficient driving for road commercial vehicles and delivery of goods.

7. Divert LPG use from transport

8. Avoid air travel where alternative options exist

9. Where possible, switch to other modern cooking solutions

10. Leverage flexibility with petrochemical feedstocks and implement short-term efficiency and maintenance measures