Invest in Energy to Drive Growth
Reporting about a panel discussion on energy efficiency at the EBRD’s 18th Annual meeting, the Russian news agency Oreanda quotes the moderator, IEA efficiency expert Nigel Jollands: “Mick Jagger is wrong. Time is not on our side. (…) But energy efficiency can help buy us time”, he said, kicking off a discussion about how investing in low-carbon technology and waste reduction can stimulate economic growth and competitiveness.

Reporting about the new IEA publication Gadgets and Gigawatts which finds that the rapidly growing number of televisions, laptops and other electronic devices will triple energy consumption by 2030, the newswire quotes IEA efficiency Analyst Paul Waide as saying that, despite this dramatic growth, there is considerable room for energy savings: “We can hold total consumption at today’s levels by using best available technologies”. According to the book, existing technologies could slash energy consumption by more than 30% at no cost or by more than 50% at a small cost.

IEA backs U.S. creating emergency gasoline reserve
Speaking at a Senate hearing on 12 May, IEA Director Didier Houssin backed the idea of creating a reserve for refined petroleum products, such as gasoline and diesel, which could help to cope with the vulnerability to hurricanes in the US refining system. “We believe that additional barrels in the US Strategic Petroleum Reserve (SPR) in the form of finished product and held in strategic locations throughout the country, ready to be utilized when refineries or distribution networks are disrupted, would bring greater additional security", he said. Mr. Houssin added that currently, the 720-million-barrel SPR holds only crude oil and would not be as effective in dealing with a disruption in gasoline supplies.

IEA sees China as world’s leading market for cleaner coal-fired plants
Reporting about China’s efforts to build cleaner coal-fired power plants, the NYT refers to the new IEA publication Cleaner Coal in China which finds that after relying until recently on older technology, “China has since become the major world market for advance coal-fired power plants with high-specification emission control systems”. The newspaper quotes IEA China expert Jonathan Sinton as saying that the country’s improvements were starting to have an effect on climate models: “It’s definitely changing the baseline, and that’s being taken into account”.

IEA Engaging Russia, China and India
Emphasising IEA efforts to reach out to major producer and consumer countries outside its membership, IEA Executive Director Nobuo Tanaka said the Agency had invited Russia, China and India to attend its ministerial meeting scheduled in October. “We haven’t gotten any concrete answer yet, but they are participating in the preparatory process already,” he said. “This is certainly one very good step forward for enhanced engagement or co-operation.”

Carbon Capture and Storage (CCS) Critical for China’s Coal Industry
The important role of CCS in the long-term future of China’s coal industry was highlighted at the Beijing launch of the new IEA publication Cleaner Coal in China. IEA coal analyst Brian Ricketts said “We know that CO2 capture and storage is not fully demonstrated and is currently too expensive, but we believe that China has the opportunity to lead in the development of new clean coal technologies.”

Worldwide oil demand continues to decline
After the April IEA Oil Market Report revised projected demand down by 1 million barrels per day, David Fyfe, head of the IEA oil industry and markets division said “this is a pretty exceptional period of oil demand collapsing.” He added, “everyone out there is trying to gauge when the recession is going to bottom out. We can’t say definitely that global GDP is not going to worsen.”

Effective Policies for Biofuels needed
While biofuels hold promises as a transporation fuel, there is still widespread concern of the effect producing it may have on agriculture. “If we just let biofuels ramp up in a random way, a lot of bad things can happen, in terms of taking land from food production, chopping down rainforests”, IEA Transportation Energy Analyst Lew Fulton said at an energy conference in Washington. He warned that a lack of global governance would make it difficult to coordinate effective policies to govern biofuels.

IEA Calls for “Effective” National Wind Energy Policies
Speaking at the European Wind Energy Association, IEA Executive Director Nobuo Tanaka called for “effective” national policies and a strong international framework. “We need to reinforce, expand and link up our transmission networks. We must also increase research and development efforts in wind-energy technology,” Mr. Tanaka emphasised.

IEA to Study Impact of Stimulus Packages on Energy
On the sidelines of an oil seminar in London, IEA Deputy Executive Director Richard Jones said the IEA was “encouraged” by economic stimulus packages being unveiled worldwide and plans to study their effect on energy. He also expressed concern that oil markets could tighten substantially if OPEC adheres to its production cuts. “There is a real risk that supply growth may lag the (demand) recovery and lead to substantially higher prices… possibly as early as this year.”

Huge potential for oil investment in Iraq
Iraq’s latest plans to boost oil production are going in the right direction, said IEA Director of Energy Markets and Security Didier Houssin. “The Iraqi potential is huge. What is interesting is that they want to force investment with international oil companies and they want to give access to this potential to develop it in a short period of time.”

Wind Energy Has Important Environmental Role
Speaking at the European Wind Energy Conference, IEA Executive Director Nobuo Tanaka emphasised that wind energy “has an important role to play in climate change mitigation” but to tap into its full potential, “we need effective policies and a strong international framework. We need to reinforce, expand and link up our transmission networks. We must also increase research and development efforts in wind energy technology.” He also stressed the importance of focusing economic recovery plans on green investments for a short-term stimulus and long-term benefits.

Surge in Oil Prices Could Hurt Global Economic Recovery
IEA Head of the Oil Industry and Markets Division David Fyfe welcomed the OPEC decision not to cut production quotas given the strains that are being faced by the global economy. “The last thing we need in the short term is an abrupt surge in oil prices,” he said.

IEA Calls for Cleaner Vehicles
At the launch of the Global Fuel Economy Initiative (GFEI) at the Geneva Motor Show, IEA Executive Director Nobuo Tanaka said “We have to find ways to reconcile legitimate aspirations for mobility, an ambitious reduction in CO2 from cars worldwide and global economic recovery.” He added, “In confronting the economic recession, this is a real opportunity for governments to combine support for the motor industry with measures to achieve environmental and energy policy goals.

Current Oil Prices Favor Investment in MENA Region
In view of the current level of oil prices the IEA Chief Economist Fatih Birol sees the Middle East and North Africa (MENA) as only regions where investment would continue to bring on new production. “It makes sense to invest in these countries if oil will stay at USD 40, mainly because there we have very low production costs of USD 10 to 20 a barrel.” A problem according to Birol is the restricted access for international firms in the MENA region.

IEA Key to New Global Dialogue on Energy
Noting that countries must co-operate more broadly in the face of growing energy-related challenges, IEA Executive Director Nobuo Tanaka emphasized that “There needs to be a genuine dialogue that focuses on investment, energy security and climate change. We may need a new international structure (for such dialogue, building on existing mechanisms). This search must begin at once.” He also emphasised that the IEA “is qualified to play a key role in the search.”

Energy Sector Must Stay Focused on Investment
Speaking at a conference in Houston, IEA Executive Director Nobuo Tanaka emphasised that the energy sector must, and governments must, invest to ensure future energy supplies and control emissions. “The recent global events may be overshadowing our focus on the longer term concern about ensuring investment for safe, secure and sustainable energy supplies,” said Mr. Tanaka.

Worldwide oil demand is down except for the Middle East
Worldwide oil demand is down except for the Middle East The deteriorating world economy will is expected to burn less oil for the second consecutive year in 2009 but demand in the Middle East will slightly rise. “Demand for transportation fuels in Saudi Arabia and Iran will continue to give support in the region because the fuel is still heavily subsidised,” said IEA senior analyst Eduardo Lopez. The IEA predicts Middle East oil demand at around 7,2 million barrel a day in 2009, up from 7 million in 2008.

World Economic Forum: Oil industry might face future supply problems
Concern is rising at the World Economic Forum in Davos that the oil industry is facing a deeper set of financial ailments and future supply problems. “We are getting ourselves into a serious situation in the oil sector,” said IEA Chief Economist Fatih Birol. “Smaller oil companies have been hit by credit problems and lower prices and we are seeing it now with big companies.” He estimates that around USD 100 billion worth of oil and natural drilling projects have been either delayed or cancelled over the past year.

Davos: Economic crisis is a chance for sustainable investment
In view of a global recession and the dangers of climate change IEA Executive Director Nobuo Tanaka sees both a challenge and an opportunity for politicians worldwide. “If governments are spending for a stimulus package, why not spend it on renewables?” he said at the World Economic Forum in Davos. This kind of investment will “stimulate the economy in the short-term and it is sustainable in the long-term.”