The global energy crisis, triggered by the Russia-Ukraine war, is unlikely to be resolved any time soon, a senior executive has said. This comes as gas prices continue to increase amid supply constraints.
European markets, in particular, are facing a severe gas shortage after Russia reduced deliveries to the region.
"I believe that we will see for some time that this [energy crisis] is staying," Dietmar Siersdorfer, managing director of Siemens Energy Middle East, said during an online media briefing in Dubai on Tuesday. "I don't see at the moment an easy fix that we say 'if we do this now, then tomorrow everything is back to normal'."
"I don't see that this is happening, because the crisis that we see with Russia, I don't think that [Moscow] will walk away, and even if the war stops tomorrow, to build the trust again, to re-fix that what we had before, it will take quite some time. At the moment, I see more increasing pressure than decreasing pressure. So we have to learn to live with this change that we have just seen a few months back."
Oil and gas prices have soared since Russia began its military offensive in Ukraine in February, with the US, the EU and their allies imposing sanctions on energy imports from Moscow.
Russia is the world's second-largest energy exporter, accounting for about 10 per cent of the world’s energy output, including 17 per cent of its natural gas and 12 per cent of its oil.
Last year, Russian natural gas accounted for 45 per cent of imports and almost 40 per cent of EU gas demand, according to the International Energy Agency. But the bloc aims to gradually reduce its reliance on Moscow.
Late last month, the EU's 27 member states agreed to stop crude oil shipments from Russia, but to leave pipelines open. Ukraine and some EU member states have urged the bloc's leaders to tackle the subject of natural gas imports, but the union is particularly reliant on Russia in that field.
However, Moscow has been reducing its supply to the region — from last October, Russian gas exports to Europe dropped sharply, mostly by constricting flows through the Yamal natural gas pipeline system.
Last week, state-owned energy company Gazprom also said that deliveries through the Nord Stream I pipeline to Germany would be cut, blaming technical issues.
To deal with the crisis, the EU announced funding of 300 billion euros ($321bn) in May for a blanket energy revamp stretching from Finland to Portugal to support the move away from its reliance on Russia.
It is also looking to new markets and recently signed a preliminary agreement to increase liquefied natural gas sales from Egypt and Israel.
"I'm confident that we will see the Middle East and Africa as an integral part of solving the energy crisis that we see in some parts of the world," Mr Siersdorfer said.
The new agreements being signed between countries in the region and European nations highlights the change that is coming about, with collaboration also extending to renewable energy sources such as hydrogen, he said.
"There's also electricity exchange ... the grids need to be more interconnected, then also the grids from Africa ... will be connected, in my opinion, in the future to Europe and we will see also maybe Egypt and other countries having links to Europe and exchange electricity."
Looking ahead, while the focus remains on decarbonising the energy industry, the transition will be gradual since the shift requires substantial investments and technology.
In the meantime, investments will need to continue into the hydrocarbons sector to support rising demand and address inflationary pressures in the market, Mr Siersdorfer said.
The energy industry has depended on "the energy triangle which is [about] balancing sustainability with affordability and security of supply", Pierre Samaties, partner at consultancy Roland Berger, told reporters at the roundtable.
"I think we lived in a world for the past 10 years where we had the luxury to really purely focus on sustainability because supply was there and affordability was there as well. This, unfortunately now, has been disrupted, and I think we need to rebalance and this is what we see on the global energy status as of today."
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
RESULTS
6.30pm: Longines Conquest Classic Dh150,000 Maiden 1,200m.
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Winner: Mazeed, Richard Mullen, Satish Seemar.
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Winner: Thegreatcollection, Pat Dobbs, Doug Watson.
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Winner: Cosmo Charlie, Pat Dobbs, Doug Watson.
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10pm: Longines Moon Phase Master Collection Dh170,000 Handicap 2,000m.
Winner:
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
ABU DHABI T10: DAY TWO
Bangla Tigers v Deccan Gladiators (3.30pm)
Delhi Bulls v Karnataka Tuskers (5.45pm)
Northern Warriors v Qalandars (8.00pm)
Directed by: Craig Gillespie
Starring: Emma Stone, Emma Thompson, Joel Fry
4/5
