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The lessons from the energy crisis following Russia’s invasion of Ukraine have not been fully learned, the International Energy Agency said that more than 60 world leaders are expected to arrive in London for discussions on energy security.
British Prime Minister Kiel strermer will host this week European Commission President Ursula von der Leyen, ministers from the US, Japan, France, Germany and India, as well as heads of numerous energy companies.
Referring to the crisis caused by the loss of Russian pipeline gas from Europe and the rush to procure alternative supply of energy, IEA head Fati Birol said he thought “the lessons from Ukraine are not yet fully understood.”
Villol, who organized the summit in collaboration with the UK government, added that there are “three golden rules” for energy security. Diversification of energy supply, ample political predictability that allows companies to make huge long-term investments, and global cooperation.
In contrast, Europe remains dependent on imported gas, with widespread changes in energy subsidies and regulations in both Europe and the US, and the trade war that President Donald Trump has unleashed is likely to cut, rather than strengthen cooperation.
Villol said the trade war caused “uncertainty that will affect oil and gas demand for some time.”
Meanwhile, risks to energy supply are growing, including wars in Europe and the Middle East, extreme weather, attacks on submarine cables and cyberattacks. “There are traditional risks and new risks, and these must be more in international debate,” he said.
Fatih Birol, head of the International Energy Agency, said there are “traditional and new risks” in energy supply © Anna Gordon/ft
Villol highlighted the balance of attendees at the fossil fuel company, as justifications to enhance oil and gas exploration, and the fossil fuel company summits, which have begun to evoke the need for energy security from renewable energy experts. Shell, BP, ExxonMobil, Totalenergies, Eni and Equinor all join alongside wind energy companies Ørsted and Vestas, as well as utility EDF, Enel, Octopus and Iberdrola.
“We look at not only traditional energy security risks such as oil and gas (loss), but also emerging risks such as supply chain (destruction) and critical minerals (loss),” Billol said.
When asked whether the UK should reverse its decision not to issue new oil and gas exploration licences in the North Sea, it said “it depends entirely on the UK government and UK industry to decide whether it is a profitable investment and whether it really improves short-term and long-term energy security.”
One of the notable absences at the summit is China. “We invited China, but unfortunately they couldn’t accept it for calendar reasons,” Villor said. “We hope everyone was at the table, but the countries attending the meeting make up three-quarters of the world’s GDP, which in my view isn’t bad at all.”
