How much of Russian oil and gas does the world need?

India's External Affairs Minister, S Jaishankar, on Monday said that India's total purchase of oil from Russia in a month is probably less than what Europe does in an afternoon. He made the comment in response to a question from a journalist, moments after US Secretary of State Antony Blinken urged India not to buy additional Russian oil, at the India-US 2+2 ministerial dialogue in Washington.

Following Russia's invasion of Ukraine, the US, the European Union (EU), and the UK placed restrictions on oil and gas imports from Russia, reported the BBC. While the US has completely banned Russian oil, gas and coal imports, the EU is reducing its Russian imports by two-thirds.

India, on the other hand, decided to ramp up its oil imports as Russia, seeking new markets for oil exports, gave a discounted price to its old friend.

As the war in Ukraine continues, the sanctions against Russia from the West are expected to rise. Putin has also threatened to cut gas supplies to "unfriendly" countries if they don't start paying for gas imports in Russian rubles. All these could lead to further rise in oil and gas prices.

Here, we take a look at how dependent the rest of the world is on Russia for oil and gas supply:

RUSSIA IN ENERGY SECTOR

• Russia is a major player in the global energy market, and it is one of the world’s top three crude producers, only behind Saudi Arabia and the United States.
• Russia is the world’s largest exporter of oil to global markets and the second largest crude oil exporter, only behind Saudi Arabia.

According to the International Energy Agency (IEA), in 2021, Russian crude and condensate output reached 10.5 million barrels per day (bpd), which is 14 per cent of the world’s total supply.

Last year, Russia exported an estimated 4.7 million bpd of crude around the world, with China being the largest importer at 1.6 million bpd. 

Europe depends on Russia for about 40 per cent of its natural gas, with most being transported by pipeline. In 2021, Russia has exported 750,000 bpd of diesel to Europe, meeting 10% of its demand.

EUROPE’S DEPENDENCE ON RUSSIA

• According to a report by the Columbia Climate School, in 2020, Europe imported about 185 billion cubic meters (bcm) of Russian gas. This is almost 36 per cent of Europe’s total gas demand.
• The EU imported 155 bcm of Russian gas in 2021, and depends on Russian gas for 45 per cent of its imports and around 40 per cent of its consumption.
• About 60 per cent of Russia’s oil exports go to the Organisation for Economic Co-operation and Development (OECD) Europe. In November, OECD Europe imported a total of 4.5 mb/d of oil from Russia (34% of its total imports), of which 3.1 mb/d was crude oil and feedstocks and 1.3 mb/d oil products, reported the IEA.

Amid the uncertainty over energy supply, European countries are trying to secure supplies from the Middle East and the Mediterranean. According to a report in ANI, Germany and the UK had sent senior representatives to Saudi Arabia and the United Arab Emirates (UAE) in last few weeks, asking them to increase energy supplies.

COUNTRIES THAT IMPORT MOST RUSSIAN OIL

Even though EU nations are the largest collective buyer of Russian oil, China is the largest single purchaser from the country. Other major countries to purchase Russian oil and gas are Germany, the Netherlands, the US, Poland and South Korea.

According to a report in The Hill, some eastern European countries are almost completely dependent on Russia for oil and gas supply.

Here's a breakdown of which country imports how much oil from Russia:

• Lithuania: 83 per cent
• Finland: 80 per cent
• Slovakia: 74 per cent
• Poland: 58 per cent
• Hungary: 43 per cent
• Estonia: 34 percent

Bigger European nations are also reliant on Russia for their energy supply:

• Germany: 30 per cent
• Norway: 25 per cent
• Belgium: 23 per cent
• Turkey: 21 per cent
• Denmark: 15 per cent
• Spain: 11 per cent

WHAT ARE THE ALTERNATIVES?

While there are many alternatives to Russia when it comes to energy supply around the world, the situation is very different for Europe. Moving on to power generation from nuclear, hydropower or coal is an option, but setting up these systems will take time and it can't be considered an immediate solution.

For gas supply, many countries are planning to move towards Norway, Azerbaijan, Qatar and the US.

For oil, many European countries are turning towards Saudi Arabia and the UAE.

According to a report in the Euractiv, most southern European countries are trying to reinforce connections with North Africa and the Balkans, with new gas and electricity connections.

The UK imports only 4 per cent of Russian gas. It said that the government will increase investment in North Sea oil and gas exploration and increase renewable energy production. French PM Jean Castex also stressed the need to increase LNG import capacity and the development of renewable energies.

German Vice-Chancellor Robert Habeck recently visited Norway, Qatar, UAE and the US to secure LNG and as much pipeline gas as possible, reported DW News.

INDIA'S OIL SUPPLY FROM RUSSIA

Commenting on India buying more volumes of crude oil from Russia, Petroleum Minister Hardeep Singh Puri said that trade between both the countries is still less than 1% of the country's total oil imports. The minister made the statement in the Rajya Sabha during question hour, reported Mint.

As per Puri, India purchased about 4,19,000 tonnes of crude oil from Russia in the first 10 months of the fiscal year - accounting for 0.2% of the total import, which was at 175.9 million tonnes. 

India imported 6,33,000 tonnes or 0.3% in 2020-21, and 2.93 million tonnes or 1.3% of total imports were bought during 2019-20.