OIL: International Energy Agency (IEA) says to halt all new oil, gas projects

By Kiana Wilburg

 May 19, 2021 – Kaieteur News – If the world is to achieve Net Zero Emissions (NZE) by 2050, then plans for new oil and gas projects must come to a halt and drillers must rely on existing assets from today. This blunt message was noted in a bombshell 227-page report by the International Energy Agency (IEA).
The report comes as a huge shocker to many environmentalists and industry stakeholders who often branded the Paris-based organisation as being sympathetic to the oil industry, oftentimes underestimating the significance of renewable energy.       

International Lawyer, Melinda Janki

In fact, the IEA has previously been in support of fossil fuel extraction efforts, and featured scenarios in its energy reports that would put the world on track to a catastrophic three degrees Celsius of warming, according to Oil Change International, a group that advocates against the continuation of the fossil fuel industry. Furthermore, previous scenarios championed by the IEA had put the world on track to net zero by 2070, which would be far too late to prevent the worst effects of the climate crisis, according to the findings of climate scientists.

In an about-turn, the report which was issued on May 19, by the global energy influencer is the world’s first comprehensive study on how to transition to a net zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth. It sets out a cost-effective and economically productive pathway, resulting in a clean, dynamic and resilient energy economy dominated by renewables like solar and wind instead of fossil fuels. The report also examines key uncertainties, such as the roles of bioenergy, carbon capture and behavioural changes in reaching net zero.

Furthermore, the special report is designed to inform the high-level negotiations that will take place at the 26th Conference of the Parties (COP26) of the United Nations Climate Change Framework Convention in Glasgow in November. It was requested as input to the negotiations by the UK Government’s COP26 Presidency.

In the report examined by this newspaper yesterday, the IEA categorically stated, “other than fields already approved for development, no new oil fields are necessary. However, continued investment in existing sources of oil production is needed.”

The IEA also stated that if the NZE scenario is to be realised, then no new Natural gas fields are needed beyond those already under development. Also not needed the agency said are many of the liquefied natural gas (LNG) liquefaction facilities currently under construction or at the planning stage.

Following the release and independent review of the said report, International Lawyer, Melinda Janki, told Kaieteur News in an invited comment that the IEA has made it clear that the oil and gas sector must come to end and is in fact coming to an end. She alluded that this has potentially grave consequences for Guyana economically and environmentally if it does not heed the clear advice that has been handed down by the Paris-based organisation.

IEA Report

The lawyer said, “Our national task now must be to protect Guyana and not be fooled by false promises of wealth. We must use the raft of available legislation and legal remedies to protect this nation. We must put aside political affiliation and unite to protect our environment for present and future generations.”

Janki concluded that ExxonMobil petroleum venture must be seen to be clearly subject to the rule of law and in line with the new trajectory that has to be taken.

ABOUT THE INTERNATIONAL ENERGY AGENCY

The International Energy Agency (IEA; French: Agence internationale de l’énergie) is a Paris-based autonomous intergovernmental organisation established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis. The IEA was initially dedicated to responding to physical disruptions in the supply of oil, as well as serving as an information source on statistics about the international oil market and other energy sectors. It is best known for the publication of its annual World Energy Outlook.

In the decades since, its role has expanded to cover the entire global energy system, encompassing traditional energy sources such as oil, gas and coal as well as cleaner and faster growing ones such as solar PV, wind power and biofuels. Today, the IEA acts as a policy adviser to its member states, as well as major emerging economies such as Brazil, China, India, Indonesia and South Africa to support energy security and advance the clean energy transition worldwide.

The Agency’s mandate has broadened to focus on providing analysis, data, policy recommendations and solutions to help countries ensure secure, affordable and sustainable energy for all. In particular, it has focused on supporting global efforts to accelerate the clean energy transition and mitigate climate change. The IEA has a broad role in promoting rational energy policies and multinational energy technology co-operation with a view to reaching net zero emissions. The IEA’s current Executive Director is Fatih Birol, who took office in late 2015 and began his second term four years later.In response to the growing number of pledges by countries and companies around the world to limit their emissions to net zero by 2050 or soon after, although that is not compatible with the 1.5 °C target, that would require net zero in the mid 2030’s, IEA announced in January 2021 that it would produce a roadmap for the global energy sector to reach 2050 net zero. That report was released this week

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Comments

  • the only  On 05/20/2021 at 4:06 pm

    Total nonsense, first tell ALL the rich oil nations to stop drilling, and if and only when they stop then Guyana will think about it.

  • brandli62  On 05/20/2021 at 4:59 pm

    Ms. Melinda Janki seems to be living in a bubble. Guyana cannot afford leaving the oil in the ground. She should lobby in Saudi Arabia and Kuwait to cut production. They have been profiting for 50 years plus of oil revenues. They should be able to afford cutting product, which would benefit poor nations like Guyana and Suriname.

  • Lawrence Allan Phillips  On 05/20/2021 at 11:47 pm

    Flagship climate craziness
    By Terence Corcoran
    National Post, Wednesday 19 May, 2021
    Energy plan rooted in fantasy
    When the International Energy Agency was created in 1974, through the political manipulations of U.S. Secretary of State Henry Kissinger under president Richard Nixon, the objective was to set up an American-controlled organization that would help maintain security of oil supply in the wake of the 1973 OPEC embargo that had artificially created an energy crisis and triggered a 300 per cent increase in the price of crude.
    Almost 50 years later, the organization, initially charged with avoiding an oil supply shock, on Tuesday called for an immediate global shutdown of new investment in oil and other fossil fuels.
    In a 224-page report titled Net Zero by 2050, the IEA proposes that “from today” there will be “no investment in new fossil supply projects, and no further final investment in decisions for new unabated coal plants.”
    The IEA is the new OPEC, but more powerful, influential, and dangerous as it aims for a massive makeover of world energy markets. Net Zero by 2050, humbly self-described by the IEA as a “flagship” and “landmark” report and subtitled “A Roadmap for the Global Energy Sector,” should be thoroughly read for what it is — a spectacular road map for collective planning insanity to fight climate change by eliminating fossil fuels and replacing them with technologies that, for the most part, do not exist.
    By 2035, the IEA’S new report claims there will be no sales of new internal combustion engine passenger cars and, by 2040, the global electricity sector will reach net zero emissions. But the IEA itself concedes that the alternatives to the fossil fuels are currently technological and economic fantasies. In another report last month, the IEA spent 280 pages explaining how converting the global auto industry to electric vehicle production will require transformations that are unprecedented and unplanned for. As I noted in this space last week, EVS require six times the mineral inputs of a conventional car, and an onshore wind plant requires nine times more mineral resources than a gas-fired power plant.
    Where will all these minerals — copper, magnesium, lithium, nickel, cobalt, rare earth elements — come from? Who knows? Certainly not the total-control agitators at the IEA. While they call for a complete overhaul of global energy systems, they warn of a lack of investment, possible disruptions, potential vulnerabilities, and “damaging outcomes for our economies and the planet.”
    In Net Zero by 2050, the IEA warns that “total market size of critical minerals like copper, cobalt, manganese, and various rare earth metals grows almost seven fold between 2020 and 2030. Revenues from those minerals are larger than revenues from coal well before 2030.” The IEA warns of price volatility in such commodities, as security and supply issues inevitably arise. Maybe that explains the current run-up in the prices of uranium, copper and other minerals.
    The IEA is a master of a certain form of institutional advocacy doublethink. “All the technologies needed to achieve the necessary deep cuts in global emissions by 2030 already exist.” But massive government subsidies and regulations are needed to roll out demonstration projects on low-carbon electricity, new battery systems, and other transformative technologies that are not quite ready for prime time.
    The scale of the investment transformation called for by the IEA is unprecedented. Clean energy investment will have to soar from a little more than $1 trillion annually to more than $4 trillion by 2030, bringing total annual energy investment to $5 trillion. That’s a lot of money diverted from other uses and plowed into chasing net zero. The IEA gets around the prospective lost investment in other sectors by claiming the new energy cash will bring economic benefits “as the world emerges from the COVID-19 crisis.”
    The claim is that all the new green net zero investment will create millions of jobs and put the global GDP four per cent higher than it would be based on current trends. How much confidence should the world’s citizens place in 10-year economic projections produced by an agency that is selling a major restructuring of the world economy?
    Then there’s the little problem of global co-operation so that each country takes the right steps, from China to Germany, and Nigeria to Brazil and the United States and Canada. The IEA is a master of downloading major problems onto the global co-operation platform. Governments need to “take international co-operation to new heights.” Without greater co-operation, net zero 2050 will not be achieved.
    Green activists are scrambling to endorse the IEA’S report, especially the call for an immediate halt to all new fossil fuel investment. “This report makes it clear that governments will need to take action to stop expanding oil, gas, and coal projects and plan for a wind down. This will require international co-operation which is why we are calling for a Fossil Fuel Non-proliferation Treaty to complement the Paris Agreement,” said Tzeporah Berman, International Programs Director for Stand.earth and chair of the Fossil Fuel Non-proliferation Treaty initiative. “For some countries, stopping expansion will be harder than for others and that’s going to mean renegotiating debt and other international agreements and co-operating to fast-track solutions.”
    If more Canadians — including bankers, oil executives, corporate chiefs, investment managers, economists, and pension managers — actually read it, Canada could become a leader in highlighting that the new IEA “flagship” report on how the world economy can be centrally planned into a net zero carbon emissions system is surely the most unsound, extreme out-of-this world planning document in history.

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