IEA Proposes Measures to Reduce Oil and Gas Consumption Amid Iran Conflict
The International Energy Agency (IEA) has recently put forward several recommendations for governments aimed at decreasing oil and gas use as a response to the ongoing conflict in Iran. One notable suggestion is to reinstate a “work from home” strategy reminiscent of the measures taken during the COVID-19 pandemic.
IEA Director General Fatih Birol mentioned, “We have initiated the largest-ever release of the IEA’s emergency oil reserves, and I’m in constant communication with key governments worldwide, including major energy players, as part of our international energy diplomacy.”
Birol added, “Today’s report outlines actionable steps that governments, businesses, and households can implement on the demand side to shield consumers from the impacts of this crisis.”
On March 20th, IEA member nations unanimously decided to release 400 million barrels of oil from emergency stocks—the largest coordinated effort in the agency’s history. Previously, the peak release was 182 million barrels in 2022 following Russia’s invasion of Ukraine.
The IEA detailed various “demand-side measures” available to tackle fuel consumption in sectors like transportation, air travel, and industry.
The report highlighted that the current conflict has resulted in unprecedented supply disruptions in global oil markets, with only a minor reduction in shipping via the Strait of Hormuz, which usually handles about 20% of worldwide oil usage.
It provided ten recommendations to lower consumption, ranging from simple initiatives like promoting public transit and avoiding unnecessary air travel to more stringent actions such as limiting car access on alternate days in large urban areas and encouraging car-sharing.
Among these suggestions, the idea of “working from home whenever feasible” was emphasized, advocating for virtual meetings instead of in-person gatherings that require travel.
The report noted, “Remote work can help diminish the use of personal vehicles for daily commutes. While not all jobs can be performed remotely, it can be an effective approach when applicable.” It mentioned that around one-third of jobs in developed nations are compatible with remote work, compared to roughly 20% in developing countries. Just a few days of remote work might reduce oil consumption by up to 6%, as commuting can represent 5% to 30% of total vehicle activity in some areas.
The IEA mentioned that governments could promote telecommuting by encouraging businesses, mandating civil servants to work remotely when possible, or even closing public offices on specific days. It pointed out existing measures in some countries, such as a four-day weekend in the Philippines and Pakistan and midweek government closures in Sri Lanka.
Furthermore, the report proposed a reduction of highway speed limits by 10 kilometers per hour (about 5 miles per hour) to curb oil consumption, particularly for larger vehicles. Initially, drivers would be asked to decrease their speeds voluntarily, with mandatory limits following if compliance falls short.
Most of these measures fall under a plan established by the IEA after Russia’s invasion of Ukraine in 2022. However, at that time, the agency was more optimistic regarding options like “high-speed and night trains” and “micromobility,” which focuses on electric scooters and bicycles.
While the IEA favored electric vehicles in its 2022 insights, this latest report seemed less enthusiastic. Nonetheless, both documents encouraged a partial return to a work-from-home model.
