The International Energy Agency’s (IEA) recent call for continued investment in existing oil and gas fields has raised concerns over the agency’s inconsistent messages, according to OPEC.
OPEC reviewed the IEA’s statements since 2017 in an article on its website, pointing out the agency’s shifting stance on upstream investment. Between 2018 and 2021, the IEA called for investments, but by May 2021, it changed its position, urging a halt to investments in new oil and gas fields in pursuit of net-zero goals.
However, the IEA took a significant turn this week. Fatih Birol, the IEA’s Executive Director, stated that continued investment in existing oil and gas fields is essential to maintaining global energy security. “I want to make it clear…there would be a need for investment, especially to address the decline in existing fields,” Birol said during the CERAWeek by S&P Global conference in Houston.
OPEC criticized the IEA for its changing messages, noting that agencies responsible for long-term industry analysis should not flip positions every few years, particularly those meant to ensure oil supply security.
In recent years, OPEC has criticized the IEA’s warnings about the imminent peak of oil demand, calling such predictions “dangerous” and suggesting they could lead to significant energy volatility. OPEC emphasizes that the world still requires billions of dollars in oil and gas investments annually.
OPEC also questioned the long-term impact of the IEA’s 2021-2024 calls to stop investing in new oil projects, urging the agency to return to analysis grounded in energy realities. OPEC offered itself as a partner in ensuring energy security, hoping the IEA will refocus on its core mandate.
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