Sen. John Barrasso of Wyoming, the incoming chairman of the Senate Energy and Natural Resources Committee, issued a critical report this week accusing the International Energy Agency of abandoning its foundational mission of ensuring global energy security.
Established in 1974 in response to the Arab Oil Embargo, the IEA was originally tasked with safeguarding the world’s oil supplies through unbiased and policy-neutral energy market analysis.
However, Barrasso’s report asserts that since 2020, the IEA has shifted its priorities to align with international climate goals, focusing on achieving “net zero” emissions by mid-century. This pivot, the report claims, has compromised the IEA’s commitment to energy security, undermining investments in oil and natural gas and creating a precarious energy future.
Central to Barrasso’s critique is the IEA’s abandonment of its “Current Policies Scenario,” a traditional “business-as-usual” reference model. The report alleges that the IEA replaced this with a “Stated Policies Scenario” (STEPS), which is based on hypothetical and unimplemented policies. Barrasso, currently the top Republican on the committee chaired by retiring Sen. Joe Manchin, described the scenario as “grounded in unrealistically optimistic assumptions,” particularly about the adoption of electric vehicles and other decarbonization measures.
This shift, according to the report, led to biased projections in the IEA’s influential World Energy Outlook. These projections, he argues, discourage critical investments in fossil fuels while promoting unattainable climate targets.
The report emphasized that the IEA’s approach jeopardizes global energy security by potentially reducing oil, natural gas, and coal production. It warns that such a reduction would leave energy supplies concentrated in adversarial countries like Russia, Iran, Venezuela, and China, which have historically disregarded international security norms.
The IEA’s Executive Director Fatih Birol is on the record saying“there will not be a need for new investments in oil and gas fields.” He has made similar statements on other occasions, most notably, “Looking at the world today or tomorrow, no one can convince me that oil and gas represent safe or secure energy choices for countries and consumers worldwide.”
The IEA’s current trajectory is gambling with the world’s energy security, the report said. If its members act on this advice, the global energy supply chain will be dominated by nations that pose a threat to international stability.
The report also criticized the IEA’s “Net Zero Emissions” scenario, which it labeled as unrealistic and economically unsustainable. The IEA has failed to account for the enormous costs of achieving net zero emissions by 2050, while ignoring its energy security implications.
The report highlighted the Biden administration’s reliance on IEA projections to justify pausing permits for liquefied natural gas exports earlier this year, a move described as shortsighted. Biden’s decision disregarded projections from the U.S. Energy Information Administration, which anticipates strong global demand for natural gas through 2050.
Barrasso’s report called for a comprehensive overhaul of the IEA’s priorities and methodologies. He urged the agency to restore its commitment to producing unbiased, policy-neutral energy scenarios and to focus on the security implications of the global energy transition.
The report outlined specific measures for the upcoming 119th Congress to address the issue, including:
- Requiring the IEA to produce a “business-as-usual” reference case in its World Energy Outlook.
- Ensuring the agency does not endorse ending investments in oil, natural gas, and coal.
- Mandating full transparency of IEA data and methodologies.
- Strengthening the U.S. representation on the IEA Governing Board.
As Barrasso prepares to lead the Senate Energy and Natural Resources Committee, his report signals a push for renewed focus on traditional energy security measures amidst global climate ambitions. He has already called for the repeal of the Democrats’ $7,500 electric vehicle handout.
“The Democrats’ EV subsidies are a bribe to push their unpopular climate agenda, killing American jobs and abusing taxpayer funds. Repealing this subsidy will put Americans back in the driver’s seat,” he said.
“The new Senate Republican Majority begins January 3, 2025. So, our day one starts in three weeks. Republicans will enter the next Congress with a long ‘Fix It’ list on behalf of the American people,” he said.
“At the top of that list is an agenda that lowers costs and restores American energy dominance. Prices today we know, are 20 percent higher than they were 4 years ago. And just this morning, we learned once again that prices have gone up in November,” Barrasso said. “And we know the culprits – the problem behind the high prices: Wasteful Washington Spending. And we’ve seen a lot of it the last four years. The other reason, of course, is the Democrats’ throttling American energy production.”
