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Energy shock created by Russia to change energy policy in coming years

Oil&Gas Materials 11 March 2022 13:14 (UTC +04:00)
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, March 11

By Leman Zeynalova – Trend:

The energy shock created by Russia will change energy policy and planning in coming years, Trend reports with reference to Goldman Sachs.

“The EU will soon announce its energy roadmap and has reportedly shifted its short-term focus from decarbonization to energy security, likely relying for now on more coal, more nuclear, and gas generation, and overall allowing for more carbon emissions (consistent with the sharp sell-off in European carbon prices over the past week of nearly 30 percent). This should prove be a significant positive for US and core-OPEC energy output in coming years, and the price induced accelerator of the energy transition for the following decade,” said the company.

Goldman Sachs notes that the geopolitical and energy consequences of any potential resolution further complicate the path to de-escalation.

“For example, any unwind of sanctions on certain OPEC members and the surge in core-OPEC and, eventually, shale production could sharply reduce the world’s reliance on Russian oil exports in a couple of years, a potential compelling opportunity for the West. In addition, the accompanying years of historically high oil prices could in turn precipitate the transition to electrification. While governments would not be achieving this through the benefit of carbon taxes, this would nonetheless prove the necessary catalyst for material change in consumer energy consumption patterns, as occurred after the oil shocks of the 1970s,” the company said.

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