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.
Speaking exclusively to the Guardian, Birol said a key effect of the US-Israel war on Iran was that countries would lose trust in fossil fuels and demand for them would reduce.
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This will have permanent consequences for the global energy markets for years to come.”
On exploring new oil fields in the North Sea:
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.”
I think the same will be true for fracking, what the German goverment is considering.
Birol also said:
Continuing high fossil-fuel prices could tempt developing countries to turn to coal, but solar was competitive with coal on cost and was growing faster.
Renewables offerred a no-regrets alternative and nuclear power was also likely to be increased. Building renewables was an option “I never heard that anybody ever regretted”, he said. “I don’t see any downsides for renewable energy.”
Experts and campaigners said the views of the IEA chief should be heeded. Ed Matthew, the UK director of the thinktank E3G, said: “Birol is simply reflecting what every sane, independent energy analyst can see. The UK’s fossil fuel reserves have been depleted by 90% and will do nothing to bring down bills.
He added: “The only effective path to energy and economic security is homegrown clean energy. All political parties should now be uniting around that mission. Their failure to do so tells you a lot about whose interests they truly represent.”
