Maria van der Hoeven of IEA Discusses World Energy Outlook 2012

This is it — what we all measure our numbers against, the benchmark.” So spoke one audience member moments before Maria van der Hoeven began her discussion of the World Energy Outlook 2012.

Faculty and students who wanted to receive the energy gospel from the original source filled the Faculty House Seminar Room on November 28 to hear van der Hoeven — the executive director of the International Energy Agency (IEA) — speak in the latest installment of SIPA’s Leaders in Global Energy lecture series.

View Maria van der Hoeven's remarks in their entirety.

She talked about the changing global energy landscape, and suggested that we are on an unsustainable path. With global demand set to rise by more than one third by 2035, she said, the world is on track for a temperature increase of three degrees Celsius, far beyond the safety target of two degrees.

Van der Hoeven identified three game-changers in the energy sector: The return of the United States as the world’s largest producer of oil and gas, Iraq’s potential for production growth, and energy efficiency.

Technological breakthroughs in hydraulic fracturing and horizontal drilling have unlocked tight oil and shale gas resources in the United States, van der Hoeven noted, spurring economic activity. With the United States being by far the largest consumer of petroleum products, the recent increase in domestic production has the potential to change global trade dynamics.

As imports to the United States fall, the IEA projects an accelerated switch in the direction of international trade towards Asian markets. This trend will be further supported by the second game-changer, Iraqi production that is anticipated to account for 45 percent of the growth in global production.

As the world energy demand grows and investments in carbon-neutral energy sources such as nuclear and renewables remain minimal, the World Energy Outlook makes the case for energy efficiency as a game-changer. A more efficient grid and less energy-intense technologies can satisfy demand as well as generation expansion. “With barriers to nuclear growth and upcoming expirations on renewable energy subsidies, van der Hoeven argued, “energy efficiency should be the low-hanging fruit.”

Van der Hoeven said that climate change should be the defining issue of our time, but has instead become a second-rate topic. She closed her lecture by calling for a constructive discussion about the divisive topics and consistent measures to create positive incentives.

— Benjamin Martinez Newman

View Maria van der Hoeven's remarks in their entirety on SIPA's YouTube channel.