08 January 2023

The Russia-Ukraine conflict began in 2014. At that time Russia annexed the Sevastopol region in Ukraine. This conflict was left without resolution and finally reached its peak in February 2022 when Russia invaded Ukraine.

Russia move to invade Ukraine was immediately opposed by the United States and the European Union. As a form of support for Ukraine, the United States and the European Union imposed an embargo on Russia. The goal is for Russia to stop the attack on Ukraine.

The US and EU embargo on Russia has been met with resistance. Russia has stopped exporting oil and natural gas to Europe. This move made the European Union release emergency oil reserves held by member countries of the International Energy Agency (IEA), the majority of which are in the European region.

So far, the European Union's oil and natural gas have come from Russia. Referring to the IEA report, every year around 50 percent of Russian oil exports and more than 60 percent of Russian natural gas exports are absorbed in the European region. The IEA also said that the release of oil reserves due to the cessation of Russian oil and natural gas exports to the European region was one of the largest in the nearly 50-year history of the IEA.

The release of emergency oil reserves held by IEA member countries is carried out in the event of an emergency response to an energy (oil) crisis that disrupts daily operational supplies. In dealing with the energy (oil) crisis, IEP members made an agreement on the International Energy Program (IEP Agreement) in 1974. In the agreement, IEA members are required to have oil buffer reserves equivalent to 90 days of net oil imports in their respective countries. This buffer reserve is in addition to the operational reserve for daily oil consumption that supplies one month's needs. The buffer reserves are released to the market of IEA member countries to strengthen the stabilization of oil energy supply to the European Union.

Realizing that the availability of oil and natural gas is the lifeblood, IEA member countries continue to try to strengthen their energy buffer reserves (oil commodities). If previously only recommended for 90 days, IEA member countries continue to increase oil reserves for more than 90 days by bringing in supplies from outside Russia.

The United States and the European Union expect the Russia-Ukraine war to be short-lived. Russian President Vladimir Putin also stated that the invasion of Ukraine would not take long. But it turns out that the Russia-Ukraine war is still going on even though it has been a year and ten months.

The prolonged Russia-Ukraine war left Europe without oil and natural gas supplies from Russia. Oil reserves as a source of energy can no longer meet the needs of the community. As a result, the European Union is experiencing energy shortages and there are even energy crises including Germany, Ireland, the Netherlands, Greece, and several other countries.

Use of EBT

Aware that the Russia-Ukraine war does not know when it will end, the European Union has implemented energy-saving policies such as limiting vehicle speeds so that consumption is not wasteful, working from home, providing incentives for people who walk and cycle, and recommending using public transportation. Accelerating the use of electric vehicles, prioritizing public transportation outside of aircraft, and fuel consumption efficiency for personal transportation modes.

In addition to saving oil, savings are also applied to natural gas commodities. Governments in a number of EU countries are required to accelerate the development of energy diversification based on new renewable energy (EBT).

Fossil energy limitations are very vulnerable to being politicized. Realizing that energy availability is a measure of economic strength, the use of renewable energy is an option in the face of fossil energy scarcity.

In realizing this, several European Union countries such as Denmark, Ireland, and Germany have the highest utilization of renewable energy such as wind and solar. However, each of these energy sources is limited and cannot meet the energy needs that continue to increase every year.

Energy use is possible from palm oil which can produce biofuel, biogas, biomass because it is cheaper and environmentally friendly.

If the use of biofuels, biogas, biomass as a solution for European countries to obtain energy certainly benefits Indonesia as the world's largest palm oil producer. If European countries need palm oil products for energy, Indonesia is one of them that can meet these needs. Meanwhile, other countries such as Africa, Brazil, China, which are also palm oil producers, are unable to meet Europe's needs.

The Deforestation Law released by Europe is actually to protect European farmers from attacks by cheaper palm oil products such as CPO. But because the vegetable oil produced by European farmers cannot meet their domestic needs, let alone for energy needs, the Deforestation Law will have the opportunity to be relaxed.

Source : https://medan.tribunnews.com/2024/01/09/krisis-energi-mengharuskan-dunia-percepat-penggunaan-ebt