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The new report aims at turning the IEA's focus away from energy transformation

According to the former director of the International Energy Agency, the International Energy Agency should rewrite its annual energy outlook in order to reflect the real-world, and not just to reinforce its current focus on global energy transformation.

Atkinson, a former IEA oil manager, wrote the report Energy Delusions for the National Center for Energy Analytics. Atkinson stated that the aim of the report was to influence the new administration under President Donald Trump.

The report lists 23 assumptions that were made by the agency, which led to a conclusion it describes as flawed: that the global economy of oil would peak in 2030 and that no new investment was needed for oil and gas.

According to the report, the IEA overestimates adoption of electric vehicles and underestimates the growth in emerging oil markets.

KEY QUOTE

The report stated that "the promotional aspirations, and flawed assumptions, underlying IEA’s peak-demand scenario, have serious implications given the obvious global security and economic considerations when planning and delivering affordable, reliable energy supplies."

BACKGROUND

Since more than 50 years, the Paris-based IEA provides research and data on energy supply and security to industrialized countries to help guide their policy. Around a quarter is provided by the United States.

The IEA's focus has shifted in recent years from oil and gas to clean energy, as governments look for input on climate goals.

The Republicans in Congress criticized the IEA for its climate-focused approach. Trump also identified this issue as one he could tackle as president.

Key Context

Trump's plan to boost the oil and gas industry, which is a traditional part of his agenda, clashes with the IEA's emphasis on a clean-energy transition. Other global oil producers, including Saudi Arabia, have also been angered by the IEA's focus on a clean energy transition. (Reporting and editing by Christian Schmollinger; Valerie Volcovici)

(source: Reuters)