IEA’s Fatih Birol: Fossil fuel demand to peak as world enters “age of electricity”

Fatih Birol, executive director of the International Energy Agency (IEA), stated that with fossil fuel demand expected to peak within the next five years, the world is approaching a new “age of electricity.” In a recent press release, the Turkish economist highlighted that the surplus in oil and gas supplies could drive significant investments in green energy.

Birol noted that in the latter half of this decade, the global energy landscape could shift substantially, with the potential for ample or even surplus oil and gas supplies, contingent on geopolitical developments. He emphasized the need for accelerating investments in cleaner and more secure energy technologies, particularly as global conflicts underline the urgency of transitioning to sustainable energy systems.

The IEA reported that a record 560 GW of renewable power capacity came online last year, marking a significant milestone in clean energy deployment. However, the agency’s July research indicated that while global demand for energy and petrochemicals continues to grow, energy security concerns might drive oil demand into 2030, despite rapid green energy advancements. The IEA projects that oil markets could experience excess supply within six years due to structural changes, with green and energy-saving technologies gradually slowing the growth of oil demand.