UEA President Birol: Buyers' Power in Natural Gas Has Increased

Emphasis on Energy Security by Fatih Birol

The President of the International Energy Agency (IEA), Fatih Birol, at the conference themed "Today's and Tomorrow's Energy Security in the World and Turkey: Risks and Solutions in Critical Minerals," organized by the Sabancı University Istanbul International Center for Energy and Climate (IICEC), stated that global political and economic developments are affecting energy security.

Changes in the Oil and Natural Gas Market

Birol pointed out that in the coming years, in addition to producer countries, new players will enter the markets and overall capacity will increase. "I predict that oil demand will continue to rise between 2030-2040. However, this will depend on the level of electrification in the transportation sector," he said.

He also emphasized that there will be a significant increase in the amount of liquefied natural gas (LNG) in the natural gas sector this year and next year. Birol stated, "All the gas that has arrived in the last 40 years will reach the markets in just 5 years. This will significantly lower natural gas prices. The natural gas market will now develop in favor of buyers," he said.

Open Developments in the Electricity Sector

Birol noted that there has been a significant change in the electricity sector, stating that the rise in artificial intelligence and electric vehicle usage has contributed to the increase in demand. He also highlighted the increasing competition in countries' investments in electricity infrastructure.

Nuclear Energy is Making a Comeback

Birol expressed that after the majority of Japan's nuclear plants were taken offline, energy dependence increased. He also mentioned that an exclusive nuclear energy meeting will take place in Davos, indicating that nuclear energy is regaining importance. He expressed satisfaction with Turkey's determination in the field of nuclear energy.

Critical Minerals and Future Risks

Emphasizing the importance of critical minerals in energy transition, Birol stated, "One should be aware of the value in refining capacity, not just in the extraction of the mine. In the future, potential disruptions in this area could be critical for both trade and energy security," he said.

Turkey's Energy Strategy

The Chair of the Board of Trustees of Sabancı University, Güler Sabancı, emphasized the growth dynamics of Turkey's energy sector and stated that they aim to be among the top five in renewable energy in Europe. She also underlined that the work on critical energy minerals is being conducted in collaboration between the public, private sector, and academia.