Challenges of oil and gas procurement due to the oil crisis in Ukraine

Abstract

It is generally known that without oil and gas, no economic system can function and that these energy sources are considered the "bloodstream" of any economy, whether it is a developed economy, a developing economy, or an underdeveloped economy. Oil reserves follow gas reserves, and the distribution of reserves of these energy sources in the world is not uniform. On the one hand, we have countries with surplus reserves of these energy sources, so they are also exporters of oil and gas, and on the other hand, countries that are in deficit or do not have them, and have to import them. Some countries, as well as some members of the European Union, have managed to develop more or less balanced energy consumption in the long run through their energy policies, while some have not. Due to the scarcity of fossil fuel reserves and the complexity of their economies, many countries have not been successful in this, and are still qualified as dependent on fossil fuel imports. In addition to improving energy efficiency and savings, in line with frequent geopolitical unrest and tensions caused by energy procurement, many import-dependent on energy countries sooner or later decide to diversify their supply, but also to replace fossil fuels with renewable energy sources.

Keywords

• risk diversification
• oil and gas distribution
• oil and gas imports
• import dependence