Mar 14, 2024 - Energy & Environment

IEA vows "unwavering focus" on oil security

an illustration of a checkmark made out of spilled oil marking through a red box

Illustration: Tiffany Herring/Axios

The International Energy Agency vows an "unwavering focus on oil security" as the energy transition unfolds.

Why it matters: On the surface, it's just anodyne stuff from the multilateral body born out of 1970s oil crises.

  • But the post follows criticism from OPEC and some analysts, who call the agency's transition outlook too rosy and reject IEA's view that oil demand will peak this decade.

The big picture: "[T]he journey to a clean energy economy may not be a smooth one, and oil consumption will not vanish overnight," IEA analysts write.

  • The agency touts its role in coordinating releases from emergency stockpiles, and other security functions.

What they're saying: "[W]e are encouraged by this message and the reference to the continuing importance of oil to the world," OPEC said.

The intrigue: IEA tells Axios the post — the latest of several commentaries marking IEA's 50th anniversary — wasn't a response to critiques.

What's next: Oil supply disruptions are more likely in decades ahead, IEA warns.

  • Reasons include growing supply concentration; inadequate investment relative to demand (over-investment is a separate risk); and extreme weather.
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