ROMA (ITALPRESS) – “What we are living in the last 5 years is something that has not been experienced in the last 4 energy cycles I have lived, from the beginning of the 80s until now. They were 4 important cycles but all quite constant and with some violent and drastic episodes but not like this period.” This is said by the managing director of Eni, Claudio Descalzi, during an audition in Commission Production Activities of the Chamber.
“On the occasion of Covid, which from the point of view of the destruction of demand was very important, the world used strategic reserves as it is happening now, but many less barrels were missing. The production had decreased by 6-7 million against almost 20 million considering today’s products with the Hormuz stop,” he added. “We have the habit of watching these episodes as singularity: first Covid, then the Russian-Ukraine war that had drastically reduced the flow of gas to Europe, and then the third episode, the most important, to date are blocked about 9-10 million barrels. These events took place in 5 years, there was no possibility of recovering, the lacks of production of crude oil and product were combined, they were not completely absorbed,” said Descalzi.
“The price is not yet certified as a big problem because they were used by the OECD countries about 400 million barrels of reserves that were placed in the market and that allowed to keep prices in a range between 90 and 100 dollars”, he said talking about the price of oil. “We had after 18 June, with the signing of the agreement, a fall to 68 dollars, now we returned to 85 because there was no positive follow-up to that signature. On the Strait of Hormuz there is a new block”, added Descalzi.
“We talk about the lack of raw but the products count a lot, because they are those that go to consumption and raise the prices. For us as Europe are diesel and jet fuel.” In detail for jet fuel “there was a shortage before, since access to the Russian market was closed about 60% came from the Gulf. Now those who are compensating are the United States. U.S. refineries with a production capacity of 95% compared to potential, usually work at 75-80%, are working to the maximum to compensate for deficiencies.”.
“Europe has dismissed a lot of refining capacity and so we import products. Importing raw and refining would have lower costs, but other choices have been made, in recent years the capacity for refining in Europe has reduced by 20%, in Italy more or less the same. For policy reasons, of rules, Europe has brought many fossil fuel productions to move. Instead of refining it here, we buy it. We are in jet fuel deficit, which we import for 35-40%, perhaps even more now”, he added.
“The tail of the Russian-Ukrainian war will lead from January 1 to a complete stop of the gas from Russia to Europe. This will find us in a situation of gas storage worse than last year. Not for Italy that is practically in line with last year at 71-72%, if everything goes as it should go, it is all negotiated, but there are European countries that are far below – he adds -. In January there will be no more Russian cubic meters and those stored will be less. For Europe that goes to gas is a concern, for what goes to nuclear as France and in part Spain is less so even if the gas budget each country must have it to compensate for the non-continuity of renewables.”.
Even when the war between Iran and the United States ended, “the risk attributed to the Gulf area will be completely different. It means money costs and higher insurance premiums, and a different focus than before on investment.” “And it will not go only for this area but also for the Red Sea, for fear that these straits are used as a blackmail or request to get something,” he said.
“The Italian electricity network in 2005 was about 35,000 kilometers, with a Rab (Regulatory Asset Base) of 5 billion, and brought about 340 TWh. To date our network is more than doubled, 76,000 kilometers, with a 25 billion Rab, so costs increased 5 times, and the network brings 311 TWh. We doubled the network but the TWh are reduced”, concluded –
These are considerations that must be made. The network, in order to avoid what happened in Spain, must have its own balance and management. All this leads to say that the gas has an immediate impact on electricity, especially in a country like ours that has renewables and gases, nothing else, there could be a moment of tension on volumes and a moment of tension on prices.”.
– photo IPA Agency –
(ITALPRESS).
