The CEO during a recent panel discussion warned that the energy crisis during the winter months of 2023-24 could be more challenging than the coming winter.
“We’ve got a tough winter coming up, and then we’ve got a very tough winter next year, because the production available in Europe in the first half of 2023 is much lower than the production we’re getting. available to us in the first half of 2022,” Russell Hardy, CEO of oil supplier Vitol, told reporters on Monday at a panel discussion in the United Arab Emirates.
Hardy added that there will be “consequences of [an] lack of energy and therefore inflation” and warned of the increase in the “cost of living.”
While speaking on the same panel, BP CEO Bernard Looney agreed with that assessment and said that energy prices are “closer to reach” and that some people are spending more money on energy.
“I think [an energy shortage] it was addressed this winter,” Looney said. “Next winter I think a lot of us are worried, in Europe, it could be more challenging.”
Rising electricity prices will lead to chaos around the world and possibly even in the United States, it has been warned. Protests have begun this fall in Germany, Austria, and the Czech Republic over high energy prices, while others have called on their governments to end restrictions on Russian natural gas and oil amid the conflict in Ukraine.
“We have seen any price shock at the pump, or something as simple as LPG [liquefied petroleum gas] to cook, it could cause chaos,” Petronas CEO Datuk Tengku Muhammad Taufik told the panel, according to CNBC.
Soon, there will be “a real risk that governments without a steady hand in policymaking” will have to deal with “chaos,” he said.
Responding to claims that oil and energy companies have been making profits in recent months, Looney said it was due to a simple economy and a supply and demand issue. This week, President Joe Biden said he would target US oil companies with an air tax and accuse them of war profiteering, although his public statements were criticized by some Obama-era officials.
Economist and former Treasury Secretary Larry Summers he wrote on Twitter on Tuesday that a policy supporting windfall taxes on oil companies could backfire on Biden.
“I’m not sure [I] understand the income tax debate for energy companies,” Summers wrote. “If you reduce income, you will discourage investment which is against our goal.”