IEF Secretary General Highlights Energy Security Threats During Japan Visit
TOKYO, Japan – IEF Secretary General Joseph McMonigle highlighted the need to strengthen global energy security during a visit to Tokyo this week ahead of the G7 Hiroshima Summit in May.
Mr McMonigle met senior government officials at the Ministry of Foreign Affairs and the Ministry of Economy, Trade and Industry, and gave a keynote address entitled "Strengthening Global Energy Security in Turbulent Times" to the Japan Energy Summit in the capital.
"Energy security has re-emerged as an urgent priority for many governments, as they seek to secure reliable and affordable energy in this unsettling new geopolitical era," Mr McMonigle told the conference.
"We are witnessing an unexpected and radical realignment of global energy flows unlike anything seen since the 1970s… Japan's presidency of the G7 will strengthen the world's focus on energy security as a top global priority," he added.
Global energy security is expected to be a key topic at the meeting of the G7 heads of state at the G7 Hiroshima Summit on May 19-21.
Mr McMonigle applauded Japan’s role as a pioneer of strong international energy alliances, pointing to its long history of partnerships with Middle East energy producers. Japan has more recently taken the lead in creating new partnerships for the energy transition, investing in clean energy technologies including nuclear fusion, hydrogen, ammonia and small modular nuclear reactors.
"I am encouraged to see that Japan is making real progress to become a leader in new clean energy technologies, with visionary projects already under way," Mr McMonigle said.
Mr McMonigle highlighted the importance of heathy and well-functioning international markets in energy and exhorted countries not to respond to geopolitical threats by turning inwards.
"Japan is living proof that energy security can be secured by fostering global cooperation, long term trusted partnerships between producers and consumers, and investments in new production and technologies for the long term," he said.
Mr McMonigle highlighted the risk of more volatility in global energy prices later this year as global oil stockpiles remain 354 million barrels below the five-year average and spare production capacity is limited.
He pointed to the recently published IEF Upstream Oil and Gas Investment Outlook, produced with S&P Global, which said that capital expenditure would have to rise 28 percent by 2030 just to avoid supply shortfalls.
"Through high prices and volatility, global energy markets are sending us a signal to increase investment. We ignore these market signals at our peril," said Mr McMonigle.
"Import-dependent economies of Asia will pay a high price for energy supply, and many of the emerging economies in the Global South will have no gas at all. Energy security cannot be a zero-sum game where the winner takes all at the expense of others," he added.