Cuts to Russian gas supplies since the invasion of Ukraine have plunged European countries into a devastating energy crisis, sending wholesale prices soaring, leaving consumers facing huge bills and the highest inflation rates since the 1980s. Speaking at a press conference in Norway on Monday, Ben van Beurden said the situation could persist for several years. “We may well have several winters where we will have to somehow find solutions,” he said. Van Beurden said the solutions to the energy crisis should be found through “efficiency savings, through deltism and a very, very fast creation of alternatives”. “That this is going to be somehow easy or it’s going to end, I think that’s a fantasy that we have to put aside,” he added. His comments come as Europe’s biggest economies brace for a tough winter with rising inflation and the threat of recession as record rises in gas and electricity bills put pressure on households and businesses across the continent. Russia, the main gas supplier to most of the EU before the war in Ukraine, has curbed exports in response to Western sanctions imposed after Vladimir Putin invaded six months ago. While not all EU countries are directly dependent on Russian supplies, competition for scarce resources has pushed up wholesale prices in Europe by 12 times compared to a year ago. Britain gets little gas directly from Russia, although it is exposed to rising prices in the wholesale market. Liz Truss, who is likely to be Britain’s next prime minister, has so far refused to specify what help she would give households as the price cap on energy bills jumps by 80% to £3,549 a year from October. Speaking on Monday, European Commission President Ursula von der Leyen said a package of emergency measures would be unveiled soon. Speaking in Slovenia as EU officials work on a plan, which could be announced as early as this week, von der Leyen said “urgent interventions” would be introduced in addition to longer-term energy market reforms. “Rising electricity prices are now exposing, for different reasons, the limitations of current electricity market design,” he said. French Prime Minister Elizabeth Bourne warned companies that power could be cut short this winter, while Belgium’s energy minister said the next five to 10 years could be tough. Speaking alongside the CEO of Shell in Norway, the head of another energy company, TotalEnergies’ Patrick Pouillon, said European governments and policymakers should plan for a future without Russian gas. The comments were made at a ceremony to mark a carbon capture and storage agreement between the two companies, the Financial Times reported. “If you think without it [Russian gas], we will make it. There is enough energy on this planet to do without it,” added Pouyanné. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. European gas prices have soared in recent weeks, reaching nearly 350 euros per megawatt hour last week as countries rushed to build up supplies ahead of winter. Ukrainian President Volodymyr Zelenskiy on Monday accused Russia of “economic terror” by trying to cut gas supplies to Europe. “He is exerting pressure with the price crisis, with poverty, to weaken Europe,” he said. Maintenance work is expected this week by Russian state company Gazprom on the Nord Stream 1 pipeline linking Russia and Germany across the Baltic Sea, complicating efforts to fill gas storage facilities. Wholesale gas prices fell again on Monday after Germany’s economy minister said he expected the country’s storage to be 85% full next month. However, prices remain more than triple the level at the start of this year. Rising energy prices have helped oil and gas companies post big profits, spurring demands for windfall taxes to help fund emergency support for struggling households and businesses. Shell made record profits of almost £10bn between April and June and promised to pay out £6.5bn worth of dividends to shareholders.
