Photo: Otvoreno / HRT
Dražen Jakšić, CEO of the Energy Institute Hrvoje Požar, was a guest on the TV show Otvoreno, broadcast on March 3, discussing the conflict in the Middle East and the energy crisis. The conflict flares up, and the whole world fears new major crises. Thousands of travellers worldwide are stranded due to the closure of airspace over the Persian Gulf. American and Israeli officials claim that the conflict will not last for years.
Along with the Institute's CEO, the show's guests were Prof. Goran Bandov , PhD, University of Zagreb, and Prof. Marinko Ogorec, PhD, military analyst, University of Velika Gorica.
"Approximately 20 per cent of the world's oil production passes through the Strait of Hormuz, and the same amount of liquefied natural gas. Of course, the stock markets reacted simultaneously, which is normal and logical behaviour given the denial of a certain amount of supply while demand remains. The price of a barrel of oil has risen. In fact, the most directly affected will be India, China, Pakistan, Iran, South Korea, Taiwan and countries in that region of the world that directly supply energy from the Persian Gulf," said Jakšić.
He noted that due to the limited capacity of existing land routes, it is not possible to replace the quantities of oil and gas currently transported by tankers in the short term, nor can new energy infrastructure be constructed during the conflict. "The supply shortfall will be partially compensated by increased production in countries such as the USA, Russia and Venezuela, which could benefit from rising prices. Although the EU has mandatory 90-day supplies and alternative supply routes, an increase in energy prices is likely," emphasized Jakšić.
Watch the full TV show below:
