The head of the International Energy Agency (IEA), Fatih Birol, expects high energy prices for at least another two to three years. “It’s a zigzag movement and we’re only at the beginning, nobody knows what’s going to happen next,” Birol told the Zeit online portal. The current situation on the energy markets is unique: “We are experiencing the first real global energy crisis.”
In contrast to the two oil crises in the 1970s, not only oil was affected, but also coal and gas, explained Birol. In addition, Russia is not just any country, but the world’s most important oil and gas exporter.
Birol estimates that Russian oil production will decline in two years at the latest because Russia will lack access to capital and technology. Because of the sanctions, not only Western oil and gas companies have withdrawn from Russia, but also large service providers. Birol warned of the social consequences of rising energy prices. “Governments now really need to target people on low incomes.”
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