Energy Prices and EU Gas Outlook Highlight IEA Warning
Fatih Birol, the president of the International Energy Agency (IEA), stated that European Union members no longer anticipate returning to the days of inexpensive gas. He articulated this viewpoint during his address to the European Parliament in Brussels. The remarks trace a clear shift in how energy costs are viewed on the continent, as reported by TASS.
Birol underscored that energy will come at a premium going forward. He asserted that there will be no revival of cheap gas in the European market, signaling a lasting change in the energy price landscape. In his words, energy in the EU is set to be noticeably dearer than it has been in the past, with prices likely to outpace those faced by major trading rivals.
According to Birol, the trend toward higher energy costs will place additional pressure on European industries because energy represents a significant portion of production expenses. He warned that when input costs rise sharply, regional manufacturers start from a disadvantage in the global marketplace.
Meanwhile, Andrew Light, the Deputy Undersecretary for International Affairs at the U.S. Department of Energy, noted a reduction in natural gas imports from Russia to certain EU member states. He suggested that this diminished supply could pose a risk to European economies during the upcoming winter season, potentially affecting energy security and industrial activity across the continent.
These observations highlight a broader conversation about energy market dynamics, geopolitics, and the pacing of energy transition efforts. While the IEA emphasizes the persistence of higher energy costs, policymakers in Europe and allied economies must navigate reliability, affordability, and competitiveness as they adapt to a supply landscape that has shifted markedly in recent years. The ongoing dialogue around gas pricing, diversification of energy sources, and strategic storage solutions remains central to sustaining industrial activity while pursuing decarbonization goals. Attribution: IEA statement via the European Parliament address (IEA); regional reaction summarized from European reporting agencies (TASS).