IEA says global oil crisis has reshaped the fossil fuel industry
International Energy Agency chief Fatih Birol said the recent global oil shock has permanently changed investment and business logic in the oil industry and urged the UK to largely forgo new North Sea expansion. He argued new North Sea developments would not materially lower UK or global oil and gas prices or improve UK energy security, and that major investments in fossil exploration do not make business sense even ignoring climate impacts. The warning comes as the UK economy stagnated in January and showed only weak growth in preceding months, underlining the country’s vulnerability to energy-driven disruptions. That shift is likely to push capital toward homegrown clean energy and risk-strand new fossil projects, forcing companies and governments to change how they plan supply and security.
