The International Energy Agency (IEA) says the fossil fuel era has begun to come to an end. The IEA predicts for the first time that world demand for oil, natural gas and coal will peak before 2030.
The latest forecasts from the International Energy Agency show that consumption of the three main fossil fuels will start to decline this decade due to the rapid growth of renewable energy and the spread of electric vehicles.
“We are witnessing the end of the fossil fuel era and we must prepare for the next era,” said Fatih Birol, director of the International Energy Agency. “This shows that climate policy does work,” he said.
The group will release its World Energy Outlook report this week, and Birol noted that new large-scale fossil fuel projects risked becoming so-called “stranded assets” while acknowledging that some investment in the oil and gas industry was needed to to make up for the decline in existing production.
Birol added: “Oil and gas companies may not just have misjudged public opinion… If they expect oil and gas demand to grow further in the coming years, they may well have also misjudged the market. New Big Fossil Fuels Not only do projects pose significant climate risks, they also pose significant financial risks.”
The United Nations also mentioned in a recently released report that the world has not achieved the goal of curbing global warming and needs to take more actions in all aspects. Countries need to commit to phasing out fossil fuels and setting targets to expand renewable energy by 2030.
In an opinion piece written on Tuesday, Birol said that as oil prices hit record highs, there is a taboo in the “traditional energy sector” and it is a reluctance to face the idea that demand for oil, natural gas and coal may be permanently reduced.
According to the latest predictions of the International Energy Agency, this era of seemingly continuous growth will end before 2030, which will have a major impact on the global energy industry and the fight against climate change.
Just three months ago, the International Energy Agency released a report stating that as electric vehicles become more popular and developed countries rapidly transition to clean energy, global crude oil demand growth will slow to a lower level within five years, and demand will reach a low level by 2030. reaches the peak before.
Birol said: “The transition to a clean energy economy is accelerating, and global oil demand is expected to peak before 2030. Oil producers need to pay close attention to changes in things and adjust investment decisions to ensure an orderly transition.”
However, not all of the IEA’s previous predictions have come true.
The International Energy Agency had predicted that Russian production would be severely damaged by sanctions after the outbreak of the Russian-Ukrainian conflict, but this prediction has largely not come true. The IEA has also called for no new investment in fossil fuels to meet climate goals, a call criticized by the oil and gas industry as unrealistic.
(Source of article: Financial Associated Press)
Source of article: Financial Associated Press
Original title: IEA: The fossil fuel era is coming to an end and demand will peak in the next few years
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2023-09-12 09:59:12
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