“Oil creates the illusion of a completely changed life, life without work, life for free. Oil is a resource that anaesthetises thought, blurs vision, corrupts.”

― Ryszard Kapuściński, Shah of Shahs

 

Since the Russian invasion of Ukraine, economic sanctions have been piled upon their economy, lowering the value of their currency (ruble), and limiting their exports around the world. For example, before the events of the past month, Russia was said to be the 3rd biggest oil supply worldwide, behind the USA and Saudi Arabia.

 

So, this begs the question, will we be able to live without Russia’s energy?

Well, yes and no. It depends where you are from.

 

The US has completely put an end to importing oil, coal and gas from Russia, and the UK and EU are following up on this, aiming to reduce, if not completely stop all imports of energy supplies from Russia.

 

So, in response to this, the western countries have all looked into other oil supplies, trying to cut a better deal, to fill this void. This has meant asking Saudi Arabia to increase how much they export, and trying to get them to cut prices, till it is stabilised, however Saudi has made no attempt to appease the US, simply ignoring their offer.

 

On the other hand, Germany has stated their stand on the boycotting of Russian fuel supplies (Rfs). Robert Habeck, at a press conference stated that an instantaneous boycott of Rfs will harm Germany and its population, more than Russia. It was said this could bring rapid unemployment and poverty, among supply shortages. It was also said that said consequences will be imminent if Germany was to completely diminish use of Rfs. It is estimated that around half of natural gas and coal imported into Germany comes from Russia, as well as third of oil. However, this does not mean that Germany will continue to import Rfs. Plans are being made to limit dependancy on Russia, and to make the transition smoother, making it easier for the German population. Another country which is importing Rfs is India. A deal proposed by Russia now allows the South Asian country to buy Rfs at a cheaper rate, benefiting its own economy.

However, leaving other countries, how exactly will this affect us?

 

Well, as you may already know, heating prices in specific are already undeniably high, these may see an increase as Russia accounts for nearly half of Europe’s natural gas imports, which will have very dire consequences as trade is being cut off.

 

As per Bloomberg’s report, the UK has seen a 18.9% increase in prices for gas, since January the first. This means, although the governments may make deals which better suit themselves, the general population will bear the brunt as they have to deal with the increase in bills. Not only this, but for people who have a car, everyone would have experienced an exponential rate of increase in price of fuel. Until the climate cools down, said prices may not decrease, further impacting us, in our everyday lives.

 

However, this may not be all so bad. Seeing as natural gas, oil and coal are all non-renewable sources of energy, and have a negative impact on the environment, a reduction in usage of them may actually be beneficial. This will force countries to become more dependant on their own renewable sources, and increasing the usage of them. This may have severe financial impacts at first, but it has potential to offset the damage done to the environment, and may even help reduce it.