IEA warns against oil export blockage
Fri Nov 25, 2011 3:19AM
Fabian Pierre, Press TV, Vienna
As more countries move to block the importing of oil from Iran, the International Energy Agency's Chief Economist, Dr. Fatih Birol says Governments are not seeing the bigger picture.
In presenting the Agency's World Energy Outlook on Thursday, Dr. Birol explained that bans can lead to under-investment in production allowing the country to meet demand a cycle of damage that the world cannot afford would begin. In spite of this, the IEA presented a rather predictable future.
Dr. Birol says that more than 90 percent of future growth in oil production needs to come from countries in the Middle East and North Africa, for example Iraq, Iran, Saudi Arabia and Kuwait. And there are predicted shifts in demand from once major players. European Union oil imports are set to overtake that of the US in 2015. China tops the list but the IEA is worried about one particular trend.
The door to preventing the disastrous effects of climate change will be closed he says by 2017 if there are no major changes in global energy investment patterns. This concern is in addition Energy Agency's worry about oil prices and the world economy. He says the world is in a much more fragile state than in the crisis of 2008 & 9, when oil prices were lower. Europe is especially at risk from high oil prices shadowed only by Asia where demand is greatest.
In a World full of uncertainty, the IEA says one thing is for sure, rising incomes and population will push energy needs higher, but it's concerned about trends it says it is seeing, and if those aren't abated, the world could end up in a VERY dark place.