The government is recognizing a new reality: the Middle East is sinking into crisis. Gas and oil exports from Saudi Arabia and Qatar, two of the world's largest hydrocarbon suppliers, are no closer to returning to pre-war levels. Added to this is the conflict in Ukraine, with bombings of Russian refineries, which is hampering the diesel market. Enough to accentuate the risks of fuel shortages in Europe and a new surge in prices. “The situation could lead, as soon as Saudi stocks are exhausted, to a reduction in the supply of the global crude product market by at least 4 Mb/d (million barrels per day) additional,” warns Emmanuel Macron in a letter addressed to the president of the European Commission Ursula von der Leyen.
To counter this possibility, and failing to find a quick solution in these two theaters of operations, Emmanuel Macron requests the relaxation of certain European regulations in this letter. It is also a way for the president to recall that the current situation is linked to international circumstances and not to national policy decisions.
Faced with this, short-term measures can be put in place, without calling into question two main principles: diversification of supplies and electrification to reduce dependence on hydrocarbons. The French president's first request concerns methane regulations. This requires the implementation of new rules for reporting and measuring methane emissions linked to gas and oil production. France is asking to postpone the implementation of this regulation by one year, to January 1, 2028 instead of January 1, 2027. In his letter, the president recalls in his letter that “even in the absence of financial sanctions, the existence of such an insufficiently prepared obligation poses an additional risk of litigation on fossil fuel importers, even as supply conditions continue to deteriorate.”
Another request from France directly concerns motorists since it concerns the possibility of increasing imports of biofuels and their rate of incorporation into fuels at the pump. This mainly concerns diesel. “A practical solution would consist of allowing fuel distributors to substitute B10 diesel (containing at most 10% biodiesel) for B7 diesel, distributed throughout Europe,” details the presidential letter. This would make it possible to increase the available diesel by a few percent, provided that compatibility with current vehicles is well validated.
A technical relaxation of standards in European refineries
Finally, the third proposal concerns a temporary relaxation of very technical points linked to the operation of refineries (reassessment of specifications linked to density, density, vaporization limits and desulfurization). All without compromising the safety of the installations. “Notable production gains could result (of the order of 5 to 20% of production, according to a consultation with French refiners),” says Emmanuel Macron. Such measures had already been considered during the Covid 19 pandemic. He finally underlines that “the situation we are facing again reminds us of the usefulness of having a coordinated and diversified approach to our energy supplies”. In the race for oil and refined products, Europeans have every interest in standing together. Which did not prevent Emmanuel Macron from speaking directly with the Canadian Prime Minister.
However, there is still no question of affecting French taxation linked to fuels. “When we lower a tax, we don’t know when and how to raise it,” notes an expert in the sector.
