DOE secretary joins criticism of energy agency's oil forecast
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Energy Secretary Chris Wright is joining criticism of the International Energy Agency's projection that global oil demand will peak this decade.
Why it matters: Dissatisfaction with the Paris-based multilateral agency — which the U.S. helps fund — has reached the highest levels of Trump 2.0.
Driving the news: Wright, in an interview with Breitbart on Tuesday, called the IEA outlook "nonsensical," noting consumption has risen consistently for many decades.
- Seven billion people aspire to high-energy living standards and comforts enjoyed by 1 billion today, he said.
"They're just saying to those 7 billion people, a billion of us are going to keep living these well-energized lives, but you guys, you've got to stay where you are," he said.
- Wright said that IEA and DOE's independent stats arm — the Energy Information Administration — had become "political."
The big picture: IEA's many outlooks and analyses inform policymakers, companies, academics, journalists, NGOs and more.
- But some GOP lawmakers and oil analysts have knocked the body, alleging it makes unrealistic projections about energy transition and has morphed into a climate NGO.
The latest: IEA, in a statement to Axios, said it works constructively with governments from all its member countries.
- "The IEA welcomes feedback on our work and attaches great importance to our dialogue with the Department of Energy and other branches of the US Government."
The other side: IEA has defended its overall approach and specific oil viewpoint, most recently last week in its latest oil outlook through 2030.
- EV growth, substitutions for oil in power generation, macro-economic trends, and other forces are already eating into demand growth and will going forward, it says.
State of play: While IEA's take collides with some look-aheads, executive director Fatih Birol argues that IEA's work is within the wider analytical mainstream.
- And IEA's annual long-term outlook hardly sees oil going away under countries' stated policies, with only gentle declines through 2050 after the peak.
What we're watching: Whether and how Trump officials and Senate Majority Whip John Barrasso — a vocal IEA critic — push for changes at the body.
