The head of Eni Descalzi said that the rejection of Russian oil would be a serious blow to the European Union.
The decision of the European Union to ban sea imports of Russian oil from December 5 and oil products in February will be a challenge for Europe due to the problematic supply from the United States and the lack of other reliable alternatives, Bloomberg writes, citing the chief executive officer of the Italian energy company Eni, Claudio Descalzi.
“It will be a big blow. Anything we can recover will come from the US,” Descalzi said.
It is noted that in other countries the prospects for increased supply are slim, as many producers struggle to maintain production levels, and Western investors are reluctant to invest in new projects.
“Even in the US, shale companies have been very slow to increase production this year, despite crude oil prices rising by about 20%. Most of them prioritized increasing shareholder payouts over drilling wells to extract oil”.
European politicians are reluctant to support large investments in fossil fuels, Descalzi said.
“We will have problems in 2023 because we will not have Russian gas in 2023,” Descalzi suggested, referring to price cuts in the near future.
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