Europe seeks homegrown power solutions

Published: 8 January 2006 y., Sunday

The European Union has a harsh New Year's resolution to keep after a gas dispute between Russia and Ukraine led to official exhortations for Europe to look for a wider range of suppliers and energy sources.

European governments must tighten their belts, concentrate more on renewable energy and reconsider nuclear power, EU officials said this week.

"As long as we spend more and more on energy, we will be getting more and more dependent," said EU Energy Commissioner Andris Piebalgs. "We should be looking more at the energy sources we have in the European Union."

The Russian-Ukraine gas spat, which led to European customers reporting a sharp drop-off in their own gas supplies, is yet another wake-up call after oil prices last year rose above $70 US a barrel.

Unless it changes its consumption or savings habits, the EU will import almost 70 per cent of its energy by 2030 and it will compete for a finite pool of oil and gas with energy-hungry boom economies such as India and China.

After the oil shocks of the early 1970s, European countries tapped into North Sea oil and gas deposits. But these supplies are dwindling, Piebalgs said. "The issue is to diversify supplies as far as we can."

Europe is a growth market for gas as it turns away from coal. In 2004, gas imports increased by 5.5 per cent and consumption grew by 3.1 per cent.

A quarter of Europe's imported gas comes from Russia, but Russia's dispute with Ukraine raised questions about its reliability as a supplier. If Europe is to lean less on the state-controlled monopoly Gazprom, it will have to buy more from North Africa and the Middle East, build new pipelines - such as the Caspian Sea route via Turkey - and use more liquefied natural gas, which is easier to pump and transport.

Šaltinis: canada.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

World Bank voices doubts

Of the 10 new members that joined the European Union in May 2004, the majority of the eight former communist bloc countries plan tight budgets for 2005 more »

Russia 'must spy' on big business

Mikhail Fradkov, Russia’s Prime Minister, has stunned the business community by saying his country's secret service must spy on large corporations to guarantee economic growth more »

Moldova reports increase in industrial production

Moldovan industrial production advanced 6.4 percent in 2004 to USD1.415bn, the Statistics and Sociology Department of the republic announced more »

The Lowest Inflation Rate

Lithuania has the lowest inflation rate among the Baltic States more »

Bulgaria FIBank Launches Eurobond Issue

Bulgaria's First Investment Bank issued EUR 200 M of bonds with a three-year maturity in a sale managed by ABN Amro and Dresdner Kleinword Wasserstein more »

Latvia Vows a Tougher Line on Banks

Latvian Prime Minister Aigars Kalvitis said he will lead a new effort to prosecute and prevent money laundering in the Baltic state to avoid international sanctions against the country's banks more »

Development of Plastic Cards System

Seminar on development of non-cash settlements with use of plastic cards in Uzbekistan more »

Italy-Azerbaijan Investment Conference Due In Rome

A 40-member Azerbaijani business delegation is scheduled to leave for Rome to attend an Italy-Azerbaijan conference on investments due on February 25 more »

Latvia Is Ready to Link Currency to the Euro

Latvia, the European Union's fastest growing economy, is ready to link its currency to the euro in a two-year test period prior to adopting Europe's common currency more »

The Substantial Reforms

Koizumi says Japan's economy recovering, vows to fight deflation more »