The CEO of Shell, Ben van Beurden, says that energy rationing in Europe cannot be ruled out as the fuel crisis continues.
Speaking at an energy conference, he added that a “really tough winter in Europe” lay ahead, and that the continent is likely to see “significant” energy rises.
Energy prices have risen since the war in Ukraine. Russia supplies 40 per cent of the EU’s natural gas, as well as 27 per cent of its imported oil. The country receives around €400bn (£341bn) a year in return for providing fossil fuels to the EU.
Europe has been trying to move away from Russian fossil fuel, banning most oil imports by the end of 2022. But it has shied away from a ban on gas imports, with fears around how countries in the EU might cope.
There are fears Russia will move to further limit supplies to the EU, it has been accused of using fuel as a “weapon” in the war.
Countries like Germany and Italy, who heavily rely on Russia for their gas, are already reporting shortages. Supplies of natural gas to Germany were halted this week for 10 days maintenance, but there are worries that the import may not restart.
While the UK gets less than 5 per centof its natural gas from Russia, there are concerns that any further limitations on fossil fuel supply will drive up competition, and therefore, prices.
“Some countries will fare better than others but we will all be facing a very significant escalation in energy prices,” warns van Beurden.
