The International Energy Agency (IEA) has warned that new oil and gas projects are essential to maintain current levels of global production. In a report released Tuesday, the agency said an analysis of nearly 15,000 oil and gas fields worldwide shows that existing fields are depleting faster than expected, posing risks to market stability and energy security.
The Paris-based organization publishes an annual report on global energy trends. Its latest assessment warns that oil demand is set to peak by the end of this decade, potentially reshaping future investment and project development.
The forecast has sparked open tensions between the IEA and the U.S. administration of President Donald Trump. In July, U.S. Energy Secretary Chris Wright threatened to withdraw Washington from the agency if reforms were not implemented.
The IEA highlighted that offshore fields and fracking projects, in particular, are underperforming, leaving significant supply gaps despite ongoing and approved projects. As a result, it concluded that new conventional oil and gas developments are unavoidable.
“Alongside balancing the market, we must also seriously address risks to energy security and emissions,” IEA Executive Director Fatih Birol said in a statement.
Source: AFP