Energy Sources: Weekly Extract

Week of May 23-27

Energy losses in energy sources

The issue of energy sources continues, and to that end, the European Union is drawing up contingency plans in case of disruptions in natural gas supplies. This can replace most of the natural gas it currently receives from Russia by the end of this year, but in the event of what it called a "total disruption" of supplies, the bloc would have to do more.

Following the contingency energy plans that seem to focus on curbing gas supply to industries, while households will not be subject to gas rationing. In other words, industrial users account for 27 % of EU gas consumption.

Russia has continued to deliver gas to its European customers as long as they were willing to pay for these deliveries under the new rules, but it cut gas supplies to Poland, Bulgaria and Finland, fueling fears that it could decide to turn off all taps.

Meanwhile, members of the U.S. National Economic Council have contacted industry participants to evaluate the possibility of restarting refineries shut down since the start of the pandemic as a last-ditch attempt to control retail fuel prices.

At least two of these refineries will be converted to biofuel production facilities, further reducing spare capacity in the world's largest oil consumer.