$105<\/a> a barrel and physical supply still constrained.<\/p>\nBirol told The Guardian that the damage to confidence in fossil fuel security is permanent, and that countries exposed to the Strait of Hormuz disruption will rethink how much geopolitical risk they are willing to embed in their energy systems.<\/p>\n
\u201cTheir perception of risk and reliability will change. Governments will review their energy strategies. There will be a significant boost to renewables and nuclear power and a further shift towards a more electrified future,\u201d Birol told the Guardian, adding that this shift will \u201ccut into the main markets for oil,\u201d resulting in \u201cpermanent consequences for the global energy markets\u2026\u201d<\/p>\n
Birol also cautioned the UK over its North Sea drilling campaign plans, which, he said, would not provide any immediate benefit. In fact, Birol points out, it would not offer any significant amount of oil and gas for many years and would \u201cnot make any significant difference to this crisis,\u201d except, of course, for tiebacks.\u00a0<\/p>\n
The message to the UK, is that any oil and gas expansion \u201cmight not make business sense.\u201d<\/p>\n
Meanwhile, JPMorgan has argued prices may need to rise further to force additional demand destruction. Goldman Sachs estimates Gulf oil production is down 57% from pre-war levels. Those are shortage signals, not evidence of a fossil fuel system in retreat.<\/p>\n
The current crisis is \u201cbigger than all the biggest crises combined,\u201d Birol said, chastising the world for being so \u201cblind-sided\u201d as to allow the global economy to be \u201chostage to a 50km strait.\u201d<\/p>\n
By Julianne Geiger for Oilprice.com<\/p>\n
More Top Reads From Oilprice.com<\/p>\n","protected":false},"excerpt":{"rendered":"International Energy Agency chief Fatih Birol says the Iran war has permanently changed the fossil fuel industry and…\n","protected":false},"author":2,"featured_media":626449,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[234845,45,49,48,234846,27956,202944,3241,9895,15999],"class_list":{"0":"post-626448","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-birol","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-demand-destruction","13":"tag-iea","14":"tag-iran-war","15":"tag-oil","16":"tag-oil-demand","17":"tag-oil-supply"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/626448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=626448"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/626448\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/626449"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=626448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=626448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=626448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}