Oil -; gas supply crunch likely worsen, says IEA's Fatih Birol

12 Jul 2022 , 09:50 AM

The president of the International Energy Agency believes that the debilitating shortages and skyrocketing gasoline and electricity costs caused by a worldwide strain on energy supply may worsen.

At a global energy meeting in Sydney on Tuesday, IEA Executive Director Fatih Birol stated, “The world has never faced a catastrophic energy crisis of this depth and complexity.” “This is affecting the entire planet; we may not have seen the worst of it yet.”

Following Russia’s invasion of Ukraine in February–at the time the largest exporter of oil and natural gas and a significant player in the commodities market–the whole energy system is in disarray, according to Birol. Globally, the cost of heating homes, running factories, and filling gas tanks is increasing due to the skyrocketing costs. This is increasing inflationary pressures and sparking fatal riots from Sri Lanka to Africa.

According to Birol, the world may witness an increase in energy regulations that quicken the shift to cleaner energy, similar to the oil crises of the 1970s that led to enormous improvements in fuel economy and a boom in nuclear power. According to him, the security of oil and gas supplies would still be a problem for Europe and other areas.

Birol predicted that this winter will be extremely challenging in Europe. This is a critical issue that might have a negative impact on the world economy.

The US Energy Secretary Jennifer Granholm said at the same forum that the consequences for the world energy sector as the US and allies confront President Vladimir Putin over the conflict in Ukraine and look for alternatives to Russian exports have highlighted the need to lessen reliance on fossil fuels.

The world’s transition to clean energy, he suggested, “may be the greatest peace strategy of all.” We must move in order to clean.