IN LAGOS: Last week, the European Commission, EU countries, and the Energy Community secretariat discussed the oil security of supply situation in Europe, as well as how to best coordinate as the Middle East conflict continues.
The group discussed the EU’s coordinated approach in case the conflict continues beyond the end of May 2026.
While EU emergency stocks can be released if needed, the commission says experts underline the importance of coordinating releases at EU level and of matching them with adequate demand-side measures to achieve effective results.
The Oil Coordination Group is continuing to convene on a regular and frequent basis to ensure a coordinated response to any developments regarding jet fuel supplies in the EU.
Concurrently, the European Commission will continue to assess the overall impact of the situation in the Middle East in Europe, support coordinated action as needed, and maintain regular communication with EU countries, the International Energy Agency, and market participants.
At present, there are currently no fuel shortages in the EU. However, regional supply constraints could arise in the following weeks if the blockage of oil supplies via the Strait of Hormuz does not get resolved.
Fuel crisis affecting vehicle market
According to the European Automobile Manufacturers’ Association (ACEA), the current oil crisis is beginning to influence parts of the vehicle market. For example, in some countries, demand for second-hand battery electric vehicles has increased in response to rising fuel prices.
ACEA Director General Sigrid de Vries says a technology neutral decarbonisation strategy that embraces electrification and includes renewable fuels is essential.
“It is key to safeguarding Europe’s resilience, protecting consumers from price and supply shocks, and delivering a successful transition to climate-neutral mobility,” de Vries says.
As previously reported, the International Council on Mining and Metals (ICMM) innovation manager Tariq Kareemulla told this news service at the Electric Mine conference that electrification will play a key role in supporting industries, particularly mining, to reduce greenhouse gas emissions over the next two to five years.
“What is clear is that electrification is moving from ambition to implementation, when we look at our leading members and partner OEMs,” Kareemulla explained.
For ICMM, the council is planning to collaborate with various groups regarding the deployment of electrification.
The Electric Mine conference took place during 5–7 May in Lisbon, Portugal. Delegates and global mining executives gathered to showcase commercially ready steps to begin electrification and decarbonisation.
Previously speaking to Mining.com.au, the Electric Mine event director Dan Gleeson says the event showcases that, depending on site profiles, energy inputs, and risk appetite, there are ‘bridge’ solutions to make a dent in companies’ emissions profiles.
“There are also front-runners that are going the whole way, some of which believe this will differentiate their company in the market,” Gleeson adds.
Concrete policy actions
ACEA highlights the need for concrete policy action in two areas. The first one is policymakers sending clear signals that electricity should become the most affordable source of energy.
The association notes that this requires lowering electricity costs used to charge vehicles.
The second action required highlights the need to incentivise renewable fuels. ACEA says that many announced short-term measures to lower fuel prices are not distinguishing between fuels based on their carbon content.
“Instead, these measures could combine consumer relief with CO2 savings: the higher the share of renewable fuels in the mix, the stronger the price relief at the pump should be,” ACEA says.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
