Tough austerity measures

Driving bans and speed limits loom due to oil crisis

Eleven million barrels of oil per day are already tied up in ships and storage facilities. If this continues, car-free days like those in 1974 could even return.(Bild: Christian Jauschowetz)

Due to the war in Iran, the world is already facing a shortfall of 11 million barrels of oil per day. The International Energy Agency (IEA) warns ofthe most severe energy crisis in decades. Local experts recommend lower speed limits, car-free days like those in 1974, and other measures to conserve oil as immediate steps.

Austria should immediately step up its efforts to curb oil and gas consumption. For experts like the renowned environmental economist Sigrid Stagl, noticeable restrictions on traffic would have a rapid effect. Car-free days, as during the oil crisis of the 1970s, as well as lower speed limits of 80 km/h on rural roads and 100 km/h on highways, are conceivable.

“The public expects relief, but as long as we remain stuck in our old habits, we’ll essentially have to watch as the budget is used to implement remedial measures—but we can’t afford that for long.” Instead of the current fuel price cap, therefore, behavioral changes are needed, along with significant interventions in mobility.

As far back as 1974, we had “car-free days”—soon it could be that time again, and we might have to stick a Wednesday sticker on our cars like the woman in the picture.(Bild: APA-Images /ehem. picturedesk, Krone KREATIV)

Accelerate the expansion of green energy
In the medium term, this cannot be achieved without consistent structural changes, according to economist Stagl on ORF Radio. In particular, theexpansionof renewable energy must accelerate. “While the electrification of industry and transportation would mean we’d need more electricity, we’d require less energy overall and would be much better protected against international crises.”

Eleven million barrels of oil a day are already sitting idle in ships and storage facilities. If this continues, car-free days like those in 1974 could even become a reality again.(Bild: Christian Jauschowetz)

The Austrian Traffic Club also recommends, as an immediate measure for every driver, slower, more anticipatory driving and shifting up gears earlier, which can save a total of 15 to 20 percent in fuel. Furthermore, companies should allow more work-from-home arrangements to reduce commuting, as well as promote carpooling, public transit tickets, and bicycle leasing for their employees.

No country will be spared.

IEA-Chef Fatih Birol

Bild: AP/Lukas Coch

“World Heading Toward the Worst Energy Crisis in Decades”
Everything depends on how long the war in Iran lasts. If the shortage of oil and gas persists for a while longer, the world is heading toward the “worst energy crisis in decades,” warned Fatih Birol, head of the International Energy Agency (IEA). “No country will be spared the effects of the crisis if it continues to develop in this direction.”

During the two oil shocks of the 1970s, “the world lost about five million barrels of oil per day in each case. To date, we have lost eleven million per day,” said Birol. The oil shortfall is thus currently already twice as large as it was in the past. The IEA has already released a record 426 million barrels from its emergency reserves to maintain global supply.

Currently, North Sea oil has risen to around $113 per barrel, and OPEC oil to $143. The U.S. bank Goldman Sachs now expects an average of $110 for April; the price could then drop to $80 only toward the end of the year.

“Economic Upturn in Austria Canceled”
The result is that, if hostilities in the Middle East persist, Austria’s economic upturn this year is “likely canceled,”according to a Raiffeisen analysis. Instead of the previously expected growth of one percent, only 0.3 percent growth is now anticipated if the crisis drags on. Inflation could briefly spike to around six percent. For the eurozone as a whole, the growth forecast would be reduced from 1.4 percent to 0.5 percent.