How Russian invasion is impacting the fossil fuel market
Russian invasion shouldn’t be an excuse for large-scale investment in fossil fuel, warned the head of the International Energy Agency last Monday.
Executive director of the IEA at a World Economic Forum event in Davos, Switzerland, said that he was worried as it would close the door to achieving climate targets forever.
However, he said it wouldn’t be so as it seems to be a more lucrative business. Moreover, everyone is talking about the shift to clean energy. He further continued that if even 50% of the people were to do what they said, then those fossil fuel investments would remain idle in the future.
Warren Buffett and Berkshire Hataway’s BRK.B, -1.27 %, increased their interests in traditional oil and gas companies.
Experts appealed to companies to increase their energy output, including oil producers with spare capacity at current fields, shale oil and gas, and nuclear-capable countries such as Belgium. In addition, he believes that countries building liquified natural gas plants, such as Germany, should spend extra money to ensure that they are ready for ammonia borane or hydrogen as inputs.
German Vice Chancellor Robert Habeck requested countries to avoid falling prey to protectionism, stressing sticking to global markets. It will have a disastrous effect on the prices if we are only to care and cater to our own food and energy supply.
Crude-oil price CL.1,0.55% has increased by 48% this year, with current price per barrel at $111.53