Bangladesh should optimise its energy consumption

Bangladesh cannot ignore the implications of the US sanctions on Russian oil as it would have a long-term impact on the international energy market.

We need to reconfigure its energy strategy in this context. The Ukraine crisis would not be eased up easily and oil price would continue spiralling thanks to the sanctions and the war.

Russia is responsible for the world's 25% oil and gas production. Russia is a giant. If you take Russia off the global oil trade, other big producers like Saudi Arabia would not be able to fill the gaps easily.

This means the supplies will remain tight and prices will go higher.

Despite being an energy giant itself, the USA is not an oil seller in the international market as its home consumption is very high.

The Russia-Ukraine war would become a localised conflict where Russia would not leave Ukraine and Ukrainians would continue the fight with support from outside.

You have to believe that the sanctions will affect Russia.

The crisis would linger if the sanctions are sustained. The whole world will have to face an oil and energy crisis. Bangladesh is not outside of this.

A decade ago, Bangladesh had to buy oil for $200 per barrel. Yes, back then our economy was smaller. Today the crude rate is $137 per barrel and it might go up to the previous level.

So, what should Bangladesh do?

We should optimise our oil and energy consumption. We should prioritise running the most efficient fuel oil-based plants and machinery. We should refrain from building new power plants that depend on oil or oil-related markets.

Bangladesh might even import a lesser amount of oil by fine-tuning its energy market and reducing demands.

Bangladeshi consumers should follow the trend of renewable energy and it should be everybody's concern to find out how they could reduce energy consumption and replace conventional ones with green energy.

Azam J Chowdhury, East Coast Group Chairman, has three decades of experience in the oil and energy business.