IEA: "The first real global energy crisis has begun"


IEA: "The first real global energy crisis has begun"

Fatih Birol, Executive Director of the International Energy Agency, speaking from the stage of the 15th International Energy Week in Singapore, explained how we entered the first real global energy crisis. According to the number one of the IEA, these increased European and Chinese appetites will further restrict the market in 2023, since the growth in demand will not be followed by an equally high supply.

Birol estimates that only 20 billion cubic meters of new LNG capacity will be added next year. According to the IEA: "Unless we have an extremely cold and long winter, and run into new surprises, such as the explosion of the Nordstream pipeline, Europe should go through this winter with some economic and social bruises." Birol also added: "Energy security is the number one driver of the transition." The room for maneuver is progressively reducing, especially now that the floods in Nigeria have completely blocked the production of liquefied gas; and that China has ordered its state-owned companies to stop LNG resales in Europe and Asia in order to increase domestic inventories.

Price volatility and supply disruptions in Europe have created a sort of domino effect on the world gas market by raising LNG, both in economic and demand terms. The demand for oil is set to grow more than any other fossil fuel in 2022, with an increase in CO2 emissions of about 180 million tons, largely determined by the transport sector, after the easing of restrictions linked to the pandemic.

The aviation sector accounts for about three-quarters of the increase in emissions from oil use, in particular due to the increase in international air travel, although emissions from the aviation sector are still 80% of pre-existing levels.

pandemic. Birol then closed: "The global energy crisis triggered by Russia's invasion of Ukraine has prompted many countries to resort to other energy sources to replace Russian natural gas supplies. The encouraging news is that solar and wind they are closing much of the gap, while the increase in coal appears to be relatively small and temporary. "