IEA Chief Expresses Deep Concern Over Energy Security Amidst Global Disruptions
IEA Chief Expresses Deep Concern Over Energy Security Amidst Global Disruptions
M.U.H
17/07/202612
Fatih Birol, Executive Director of the International Energy Agency (IEA), stated on Thursday during a forum hosted by the Council on Foreign Relations think tank in Washington that oil security remains a critical issue. He expressed concern, warning that “If the situation does not improve in the next few weeks, we have to be worried. I am worried.”
Birol acknowledged that despite significant surges in energy prices, several factors have mitigated the impact. These include substantial oil reserves in China, which exceeded one billion barrels before the conflict, and efforts to reduce oil consumption through increased adoption of electric vehicles and public transportation. Furthermore, the IEA coordinated the release of up to 400 million barrels of oil from strategic reserves.
However, Birol cautioned that these mitigating measures are not a permanent solution. He described the ongoing conflict as the most severe energy disruption in history and stressed that the current adjustments cannot last indefinitely.
The IEA chief also noted the positive impact of increased oil production from the United States, the world’s largest producer of oil and gas. He stated, “The increase in American production is very good. America has increased its crude oil production by one million, two million barrels, but it cannot increase crude oil production by ten million barrels a day.”
Birol elaborated that the oil and gas supply crisis has negatively affected economies worldwide, though not uniformly. He indicated that “Asia, in particular,” has borne the brunt of this situation, largely because “80 to 90 percent of this energy is received through the Strait of Hormuz.”
While Japan and South Korea have experienced difficulties, Birol highlighted that developing nations, including Pakistan, Bangladesh, and India, have been the most severely impacted. He also raised concerns about the potential health risks for populations in these developing countries, especially women, who are increasingly resorting to alternative cooking fuels like dung and wood. These fuels emit more dangerous gases and are being used because petroleum products have become unaffordable.
