IEA releases report designating 2023 a ‘moment of truth’ for petroleum industry

Originally published at Europe in Review on December, 2023

The IEA released a report titled “The Oil and Gas Industry in Net Zero Transitions” on November 23 calling on the global petroleum industry to make “pivotal” choices to ameliorate the effects of climate change, which the report claimed is being largely caused by the burning of fossil fuels. [IEA] [IEA Report]

The report notes a 40% increase in investment in clean energy investment since 2020 and predicts peak oil and gas demand will occur by 2030, after which demand may fall by 40% or more by 2050. IEA advocates that the industry commit to a net zero target itself, producing zero carbon emissions in the production of fossil fuels, and invest in hydrogen, liquid biofuels, carbon capture, solar, and offshore wind instead of in further fossil fuel production.

Oil Producing Export Countries (OPEC) President Haitham Al Ghais accused the IEA of “vilifying” the oil and gas industry in their report noting oil and gas provided energy security as well as reliable energy at lower prices than intermittent renewable fuel sources. [Reuters]

IEA noted in their report that without reduction in fossil fuel output there was not enough electricity in the world to offset the annual carbon emissions resulting from the burning of fossil fuels. IEA advocates the oil and gas industry plan to decrease production significantly over the next three decades, however, OPEC predicted significant fossil fuel consumption growth for the next 20 years in its World Oil Outlook 2045 released in 2023. [OPEC]

(rw/gc)