IEA sets out consumer-focused plan to reduce oil demand

IEA sets out consumer-focused plan to reduce oil demand

London, 18 March (Argus) — Paris-based energy watchdog the IEA today laid out a 10-point plan of actions that advanced economies can take to cut oil demand by 2.7mn b/d in the next four months.

The IEA said earlier this week that 3mn b/d of oil could be forced offline by the Russia-Ukraine conflict, as sanctions take effect and buyers step back from purchasing Russian oil.

The IEA's proposed measures concentrate on demand and focus heavily on the consumer. The biggest saving is from people working from home, the watchdog suggests. Working from home for three days a week will save around 500,000 b/d of oil, according to the report. The IEA also recommends speed limits are reduced, public transport is made cheaper, rail is used in place of air travel and that "car-free Sundays" are adopted in cities.

The plan follows one earlier this month from the IEA that set out a path to reduce the EU's reliance on Russian gas.

The measures the IEA laid out today "have been already tested in various countries successfully," its executive director Fatih Birol said, whether for previous "oil shocks," reducing air pollution or to reduce the spread of Covid-19.

Birol warned at today's press conference the