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IEA warns energy companies against banking on strong oil demand

Risks stemming from over-investment in fossil fuels have ‘evolved’, says energy watchdog

The International Energy Agency expects demand for oil to fall by almost half by 2050 if governments follow through on pledges to clean up energy supply, warning that oil and gas investments are no longer “safe or secure” for countries or consumers.

Fatih Birol, the head of the west’s energy watchdog, said the energy crisis triggered by Russia’s full-scale invasion of Ukraine, rising tensions in the Middle East, and record temperatures this year demonstrated the risk of continuing to rely on fossil fuels. The remarks come as the IEA publishes its annual World Energy Outlook report.

Birol was unapologetic about his longstanding call for new oil and gas investments to end, despite growing animosity from many producers in the sector, from energy executives in the US to the Opec cartel.

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