Exclusive: International Energy Agency’s Fatih Birol, the world’s leading energy economist, also says UK should largely forgo North Sea expansion
By Fiona Harvey Environment editor
The oil crisis triggered by the Iran war has changed the fossil fuel industry for ever, turning countries away from fossil fuels to secure energy supplies, the world’s leading energy economist said.
Fatih Birol, the executive director of the International Energy Agency (IEA), also said that, despite pressure, the UK should forgo much of its potential North Sea expansion. …
“Their perception of risk and reliability will change. Governments will review their energy strategies. There will be a significant boost to renewables and nuclear power and a further shift towards a more electrified future,” he said. “And this will cut into the main markets for oil.”
…
Birol said there was no going back from the crisis: “The vase is broken, the damage is done – it will be very difficult to put the pieces back together. This will have permanent consequences for the global energy markets for years to come.”
While focused on the global picture of shortages and future demand, the IEA chief also urged caution over the UK’s potential plans. The oil industry and its allies have called for increased North Sea drilling, including giving the go-ahead to the Jackdaw and Rosebank fields that have received exploration licences but not production permits.
Birol said: “It is up to the government, but these fields would not change much for the UK’s energy security, nor would they change the price of oil and gas. They would not make any significant difference to this crisis.”
He also cautioned against granting exploration licences for further new fields on commercial grounds.
#
Flashback: Birol already declared fossil fuels dead in 2023: – ‘It’s finished!’: IEA boss Faith Birol says COP28 bid farewell to fossil fuels – ‘200 countries have signed a document to say goodbye to fossil fuels’
Marc Morano criticizes IEA’s fuel consumption reduction push
