H. Yoo
Research expert covering South Korea
Energy import dependency in Europe - statistics & facts
Europe is highly reliant on energy imports. Home to some of the largest economies in the world, the region’s energy demand has long exceeded local production capacities. Though countries like the United Kingdom were historically major producers of coal, crude oil, and natural gas, depleting domestic reserves and a greater focus on the clean energy transition have resulted in the EU energy import dependency reaching around 60 percent. In how far this may prove an issue was made clear by the conundrum European leaders found themselves in following the Russia-Ukraine war, namely the continent’s heavy reliance on Russian energy imports.
However, as Europe has merely transferred its import dependency from one supplier to another, its energy system remains susceptible to outside influence. In order to ensure energy security and tackle decarbonization, some EU countries such as France, Italy, and the Netherlands have thus called for renewed financing of nuclear power in Europe. Although building the necessary facilities would be time-intensive and costly and could take away from renewable investments as was argued by countries such as Germany and Austria.
The role of oil and gas in Europe’s energy sector
Although greater climate change awareness has resulted in many governments more earnestly tackling the energy transition, fossil fuels remain a crucial part of the energy sector. Oil and natural gas are still by far the most consumed primary energy fuels in the EU. Oil and gas are versatile energy sources, used not only for motor fuels, heating, and electricity generation, but also within manufacturing industries such as chemicals and steel. In many of these sectors, fossil fuels are indispensable as renewable alternatives have yet to become scalable. Additionally, the EU’s shift away from nuclear energy following the 2011 Fukushima disaster has put an even greater emphasis on gas usage. This has contributed to natural gas import dependency in the EU rising by around 20 percentage points since 2011, reaching 90 percent in 2023.Europe’s shifting dependency on Russian energy imports
Before the Russia-Ukraine war, European natural gas trade relied largely on pipelines. Although a few countries, such as Spain, France, and the UK had built a robust LNG infrastructure, pipelines and as such producers in neighboring countries were the main source of gas import trading in Europe. Three countries stood out in a ranking of Russian gas dependence in Europe, being 100 percent reliant on their Eastern neighbor for the supply of said fossil fuel before the start of the war. Meanwhile, there were 13 European countries obtaining more than half of their gas supply from Russia. This heavy dependency shifted following the war, with Russia’s share in natural gas supply to Europe falling to just 10 percent by 2023. This is primarily due to new LNG ventures, which allows for trading with more remote locations such as the United States.However, as Europe has merely transferred its import dependency from one supplier to another, its energy system remains susceptible to outside influence. In order to ensure energy security and tackle decarbonization, some EU countries such as France, Italy, and the Netherlands have thus called for renewed financing of nuclear power in Europe. Although building the necessary facilities would be time-intensive and costly and could take away from renewable investments as was argued by countries such as Germany and Austria.
