The New World Order of Energy

Fatih Birol of IEA was interviewed in the latest issue of Foreign Policy magazine.

Some excerpts:

FP: Can you tell us a little bit about your preliminary findings?

Fatih Birol: "We are entering a new world energy order. Today, demand for oil is dominated by China, India, and even by the Middle East countries themselves. The main actors of the recent past—namely the OECD countries, rich countries, the United States, Europe, Japan—their time is passé. It’s over."

FP: Do you believe in peak oil?

Birol: "Of course, but the question is when? .... When we look at oil outside of the OPEC countries, when you put all of them together, I think it is going to peak very soon."

"There is definitely financial speculation, but the main reason for the high prices is the growing perception in the markets that the future demand growth may not be met by the supply growth."