Energy Crisis: 20M Barrels Disrupted Daily in Hormuz, Worst Ever, Says UCC

Senior ministers have called the current energy crisis the worst the world has ever seen, echoing IEA Executive Director Fatih Birol's description of it as "the greatest threat to global energy security in history." The crisis is driven by conflict in the Middle East, disrupting energy infrastructure and shipping routes like the Strait of Hormuz.

Prof Brian Ó Gallachóir of UCC said the current crisis represents the largest disruption to energy supply on record, with approximately 20 million barrels per day affected in the Strait of Hormuz, compared to 4.5 million during the 1970s oil crisis. The IEA released 400 million barrels of oil from strategic reserves, the largest amount ever released.

Analysis of Brent crude prices shows similar or higher spikes during the 2008 economic crash and Russia’s 2022 invasion of Ukraine. EY's Sean Casey said oil is over $100 a barrel, similar to 2022, but gas prices are lower. He noted the multi-fuel and global nature of the current crisis, involving both oil and gas.

Both experts said Ireland is exposed to global energy shocks due to its reliance on imported fossil fuels, with 80% of energy imported. Casey noted Ireland imports over 80% of its gas, which accounts for half of electricity generation. While the current crisis has the largest supply disruption on record, price spikes and economic impacts do not clearly exceed earlier crises, but Prof Ó Gallachóir said "it could also be the worst in terms of price effect."