The International Energy Agency expects demand for oil to fall by almost half by 2050 if governments follow through on pledges to clean up energy supply, warning that oil and gas investments are no longer “safe or secure” for countries or consumers.
Fatih Birol, the head of the west’s energy watchdog, said the energy crisis triggered by Russia’s full-scale invasion of Ukraine, rising tensions in the Middle East, and record temperatures this year demonstrated the risk of continuing to rely on fossil fuels. The remarks come as the IEA publishes its annual World Energy Outlook report.
Birol was unapologetic about his longstanding call for new oil and gas investments to end, despite growing animosity from many producers in the sector, from energy executives in the US to the Opec cartel.
“Looking at the world today or tomorrow, no one can convince me that oil and gas represent safe or secure energy choices for countries and consumers worldwide,” Birol told the Financial Times.
Birol’s comments come after the second supersized oil deal this month, with Chevron agreeing to buy Hess for $53bn on Monday following ExxonMobil’s purchase of Pioneer, in a clear bet by two of the largest western oil and gas producers on the longevity of fossil fuels.
Chevron chief executive Mike Wirth criticized the IEA directly for forecasting fossil fuel demand will peak before the end of this decade, saying he did not think it was “remotely right”.
Asked about the deals, Birol said “larger-scale fossil fuel investments” not only posed a “risk for our climate but also have some business risks as the world may not need an increase of oil production”.
https://report.az/en/energy/iea-warns-energy-companies-against-banking-on-strong-oil-demand/