US Will Never Gain Oil Market Crown Says IEA Head

No matter how much oil the United States produces over the next few years, it will never become the next Saudi Arabia in the global oil market, according to Fatih Birol, the new executive director of the International Energy Agency (IEA).

What’s especially interesting about this forecast is that it directly contradicts what Birol said only three months ago, and he gave no explanation for his change of mind.

On Feb. 26, Birol told The Telegraph’s Middle East Congress in London that OPEC, particularly the Persian Gulf members, will prevail over all other producers for the foreseeable future, even though the revolution in extracting shale oil has been “excellent news” for American producers. Continue reading

Natural gas basins could turn the Mediterranean into a “sea of prosperity”

Natural gas basins could turn the Mediterranean into a “sea of prosperity,” but there is a risk that politics may hamper economic progress, the head of the International Energy Agency (IEA) has warned.

“The biggest problem in the eastern Mediterranean is not the existence of reserves, it is the potential that politics may supersede the economy,” Fatih Birol, the IEA’s chief economist, told daily Hürriyet.

“If this settles down, I believe eastern Mediterranean gas will raise the prosperity of regional countries and could become an important alternative to Russian gas,” he said. Continue reading