The EU is insufficiently prepared to weather a future gas crisis despite introducing a raft of measures to end its dependence on Russian energy, the European Court of Auditors said on June 24.
Europe's energy supply was upended in 2022 when former top gas supplier Russia invaded Ukraine and slashed fuel deliveries, prompting the EU to introduce emergency policies to fill gas storage, reduce gas use, and jointly buy gas.
Europe managed to avoid a major gas shortage during the crisis, but it is unclear how much of that can be credited to EU policies versus other factors like mild winter weather and high prices causing industries to use less gas, the ECA said in a report on June 24.
Coordination between Brussels and EU countries helped to forge new gas supply routes to avoid shortages, and the EU's obligation for countries to fill gas storage 90% ahead of winter created market certainty, the report said.
But the auditors said these actions did not sufficiently address the affordability of gas, the price of which surged to above 300 euros ($322) per megawatt hour in August 2022 from around 50 euros per MWh a year prior.
"The Commission knew already in 2014 that a cut-off of Russian gas would have a huge impact on prices, but never modeled its effects on consumers or industry," said Joao Leao, who led the audit.
The auditors flagged other gaps in Europe's preparations for supply crises, noting that six EU countries have kept the option to cut off gas deliveries to their neighbors in an emergency.
They declined to comment on how the scheduled expiry this year of a deal on the transit of Russian gas to Europe via Ukraine would affect Europe's energy security. But they noted the EU's overall reliance on Russia has dropped from 45% of total gas supplies in 2021 to around 15% last year.
Europe's gas demand is expected to decrease as countries reduce fossil fuel consumption to meet climate goals. The auditors said the EU is far behind on its plans to build carbon capture infrastructure to capture the emissions from continued gas combustion.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Fourth Week in a Row-Baker Hughes
2024-04-12 - The oil and gas rig count, an early indicator of future output, fell by three to 617 in the week to April 12, the lowest since November.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
US Drillers Cut Oil, Gas Rigs for Fourth Time in Five Weeks
2024-05-24 - The oil and gas rig count, an early indicator of future output, fell by four to 600 in the week to May 24 the lowest since January 2022.
US Oil, Gas Rig Count Falls to Lowest Since January 2022
2024-06-07 - The oil and gas rig count, an early indicator of future output, fell by six to 594 in the week to June 7, decreasing for the second time in three weeks.
US Drillers Cut Oil, Gas Rig Count to Lowest Since January 2022
2024-06-14 - Baker Hughes said the total rig count is down 97 rigs, or 14%, below this time last year.