The world is experiencing the first global energy crisis, and it is possible that the worst part is yet to come, warned Fatih Birol, executive director of the International Energy Agency (IEA).
Fatih Birol said at the Sydney Energy Summit that the world has never witnessed an energy crisis of such great depth and complexity and that perhaps it is yet to see its worst part.
He pointed out the world is in the middle of the first global energy crisis. As the main causes, Birol cited the mix of several factors, including geopolitics.
Since the beginning of the war in Russia, the entire energy sector is in a mess
The prices of oil, natural gas, coal, and electricity are skyrocketing, he said. The reason, in his words, is that Russia, the country that attacked Ukraine, is the largest exporter of oil and natural gas.
Birol pointed out the entire energy sector is in a mess since the beginning of the war in Ukraine, resulting in a global crisis.
This winter will be very, very difficult in Europe, which may have serious consequences for the global economy, Birol asserted.