At the so-called "Davos Conference" held in Switzerland until the 20th, the annual general meeting of the World Economic Forum, there was a great deal of interest in the direction of the energy crisis.


We asked Mr. Birol, Executive Director of the International Energy Agency (IEA), about the outlook for the energy market.

Q. What is your outlook on the energy crisis?


A. The most important is China.

A recovery in China's economy could lead to tighter markets and higher energy prices, creating challenges for economies in Europe, Asia and beyond.

As China is the world's largest oil importer, developments in 2023 will be critical, as strong economic growth will increase China's demand for oil and, as a result, put upward pressure on oil prices.

Therefore, it is necessary to utilize renewable energy, nuclear power, hydrogen, etc.



Q. What will happen in the future with Russia continuing to invade Ukraine?


A. Russia used to sell a lot of gas and oil to European countries, but Russia suddenly lost its biggest customer.

Finding new customers for pipelined natural gas is not easy.

Laying pipelines to China, India, etc. will not be possible within 10 years.

Oil is also difficult because there are many logistics problems.

The role of Russia, which used to be an energy powerhouse, in the world energy market will be greatly reduced in the future, and Russia will lose the battle for energy.

Q.In the world, there is a movement to increase the energy self-sufficiency rate, such as the expansion of renewable energy.

How do you see the situation in Japan?


A. In a situation where energy and geopolitics are so closely intertwined, it is important to increase the share of domestic energy sources as much as possible.

Some countries are fortunate to have huge potential for renewable energy, while others are disadvantaged due to their geography.

For example, I think the most important option for Japan to consider is nuclear power.

Hydrogen and ammonia are also important.

Offshore wind power generation is becoming more popular worldwide, and costs are coming down.

There are many economically viable offshore wind farm candidate sites in Japan, and their use will increase.



Q. How was the focus on climate change measures at this year's conference?


A. I feel that climate change has become less important than last year, for example.

Besides the energy and geopolitical crises, don't forget climate change.

The climate change crisis will one day surprise many parts of the world.