The IEA advises measures to mitigate upcoming fuel shortages due to the conflict in Iran.
Many companies have recalled employees to offices after Covid lockdowns, but the Iranian war and subsequent energy crisis might prompt a shift back to remote work. The International Energy Agency (IEA), an energy watchdog formed post-1970s oil crisis, urges governments, businesses, and households to adopt strategies to reduce energy demand amid supply disruptions caused by the conflict. The IEA’s report suggests ten actions, such as encouraging remote work, reducing driving speeds, and switching from gas to electric cooking.
The “immediate actions” recommended by the IEA include:
1. Remote work to reduce oil use from commuting where jobs allow.
2. Implementing a minimum 10 km/h reduction of highway speed limits to save fuel.
3. Promoting public transport to cut oil demand by shifting from private cars to buses and trains.
4. Enforcing rotating private car road access in large cities to lower congestion and fuel-intensive driving.
5. Encouraging car sharing and efficient driving to rapidly reduce fuel consumption.
6. Promoting efficient driving practices for commercial vehicles to decrease diesel use.
7. Redirecting LPG use from transport to conserve it for essential needs like cooking.
8. Limiting air travel when other options are available to ease jet fuel market pressures.
9. Encouraging electric cooking and other modern cooking solutions to lessen LPG dependency.
10. Utilizing flexibility with petrochemical feedstocks and rapid efficiency measures to support essential LPG use and reduce oil consumption.
These measures mainly target reducing road transport, which accounts for roughly 45% of global oil demand, according to IEA data. Gas prices soared in the US following strikes by the Trump administration and Israel against Iran, with ongoing military actions likely worsening energy markets, per IEA’s Executive Director Fatih Birol.
“We executed the largest release of IEA emergency oil stocks and maintain communication with key global governments and energy producers to aid in energy diplomacy,” stated Birol. “But supply-side solutions alone can’t address the disruption level. Tackling demand is vital for reducing consumer pressure, improving affordability, and bolstering energy security.”
IEA’s suggestions are voluntary, leaving global governments and companies to decide on their adoption. Certain countries have already taken steps to curtail oil demand, yet few have instructed a return to remote work from home settings.