Shutting down Russian gas could have put the planet on a path to a green economy, some experts have revealed, following Russia’s invasion of Ukraine, which could cause many EU countries to reconsider. the practical and ethical implications of such a reliance on fuel. Fossil fuels from Moscow to power its economies.
Politicians across Europe have responded by calling for an accelerated transition to renewables. However, problems soon began to appear in the European resolve – the British government began to double domestic oil and gas production and Prime Minister Boris Johnson even visited Saudi Arabia to ask the regime to increase its oil production.
Saudi Arabia is the biggest beneficiary of the conflict in Europe, notably through Saudi Aramco, the state-owned company that is the world’s largest oil exporter, posted its biggest quarterly profits since its IPO in 2019. The week last, it overtook Apple as the most valuable company in the world. BP, ExxonMobil and Shell have also benefited greatly from high oil prices exacerbated by the war in Ukraine. After hitting a 14-year high of $139 a barrel in March, Brent is trading at around $110 a barrel, about two-thirds higher than a year ago.
Oil production declined globally during the Covid-19 shutdowns as demand declined. Some fossil fuel giants, such as Shell and BP, have pledged to very gradually cut oil production as part of their promised transition to cleaner energy sources.
However, Saudi Aramco is calmly considering channeling its record profits to increase its oil and gas production. “Energy security is vital and we are investing for the long term, expanding our oil and gas production capacity to meet projected demand growth,” said Amin Nasser, Aramco’s chief executive.
A rally near Kwasi Kwarteng, Britain’s business and energy secretary, last week sparked reaction on Twitter: “Scream all you want, but I won’t jeopardize Britain’s energy security by halting domestic oil and gas production. We will need oil and gas for decades to come. Likewise, the EU’s plan to ban Russian oil imports looks increasingly fragile as the Hungary, which relies heavily on fossil fuel imports from Moscow, refuses to back the proposal in the name of energy security.The main beneficiary of Saudi Aramco’s profits is the Saudi government, which owns 94% of the company’s shares.
Shout and yell all you want, but I’m not going to jeopardize Britain’s energy security by shutting down domestic oil and gas production.
We will need oil and gas for decades. Either we source more from the North Sea or we import more from abroad. https://t.co/LvnnaBybny
— Kwasi Kwarteng (@KwasiKwarteng) May 13, 2022