The International Energy Agency’s announcement to release an unprecedented 400 million barrels of oil reserves underscores the gravity of the fossil fuel crisis triggered by the Iran war, said 350.org. The group warns that the release is at best a stopgap measure, while global oil and gas markets will continue to hold consumers hostage from one crisis to the next.
350.org called for a windfall tax on excess profits by oil and gas producers and traders benefitting from the crisis. Revenues from windfall taxes should be used to help cushion families from price shocks in the short term, and replace conflict-ridden fossil fuels with homegrown solar and wind energy to provide a more secure and affordable long-term solution.
According to industry analysts, producers not dependent on Persian Gulf supplies such as ExxonMobil, Chevron, Shell, and Total stand to gain windfall profits from the crisis. US LNG exporters and traders are poised to earn roughly $870 million more per week due to higher prices.
Anne Jellema, 350.org executive director said:
“As families’ incomes shrink from price shocks, oil companies are counting their winnings. Governments face a clear choice: will they protect profits or people? This is the moment to break our costly fossil fuel addiction, and Big Oil’s windfall gains can help to foot the bill. Releasing emergency oil reserves buys us days. Taxing windfall oil profits to invest in renewable energy buys us a future free from price shocks and violence.”
Media Contact:
Ilang-Ilang Quijano, 350.org Media Campaigner, [email protected], +639175810934
Kim Bryan, 350.org Media Strategy and Relations Manager, [email protected], +447770881503