The European Union (EU) depends on imports for nearly 50% of its energy needs and by 2030, this figure will rise to 70%.
Online PR News – 27-November-2009 – – The European Union (EU) depends on imports for nearly 50% of its energy needs and by 2030, this figure will rise to 70%. Crude oil imports will increase by 23.7% and natural gas imports will increase by 68% in 2005. In the long term, the entire EU will face the problem of increasing dependence on foreign energy resources. EU can effectively deal with this common challenge only with a strong, consolidated common European Policy in place.
Heavy dependence of the EU on imported energy resources poses future risk given the fact that EU lacks diversified sources of energy import. For natural gas, the EU largely depends on Russia and most of its crude oil is imported from the Middle East. This makes the supply of oil and gas supply to the EU vulnerable to any changes or disturbances happening in these countries.
The unstable geo-political environment in the Middle East potentially risks steady supplies of oil from the region and thus jeopardizing Europe’s overall energy sector. Russia has always tried to maintain a monopoly over Europe’s natural gas market and whose strategy has always revolved round making Europe more dependent on Russian gas. These issues pose a big challenge for the EU to secure its long term energy needs. Energy security being a common problem for all the EU member countries, adhering to the resolutions of the common energy policy of 2007 will help in resolving this issue by providing higher negotiating ability based on collective effort.
This analysis was taken from a research paper published by GlobalData, to download the full Research Paper for free, click below:
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