Senators Examine Global Energy Market Outlook

The Senate Energy and Natural Resources Committee held a hearing this week to examine the domestic and global energy outlook from the perspective of the International Energy Agency (IEA).  Senators received testimony from Dr. Fatih Birol, Executive Director of the IEA, who testified on recent trends in global energy markets and IEA efforts to promote international energy security, cooperation, and market stability. 

In her opening statement, Chairman Lisa Murkowski (R-AK) praised recent accomplishments in creating new opportunities for energy investment in the United States. “Allowing for increased exploration and production in the United States—as we did at the end of last year, with the opening of Alaska’s 1002 Area—will provide for our long-term security and allow us to extend our influence in world markets. At the same time, we know that these markets are cyclical, and that prices could rise substantially in the future if we do not take proactive steps to spur investment and supply. Just last March, the IEA warned that global oil supply could lag after 2020, if new investments are not made in the near term. That is a warning for all of us. I know the IEA has continued to conduct significant research on this matter and look forward to delving deeper into it here today.” 

In his testimony, Dr. Birol, noted four major shifts in global energy markets in the coming decades: “1) the U.S. becoming the undisputed global oil and gas leader; 2) the rapid deployment and falling costs of clean energy technologies; 3) the shift to a more services-oriented economy and a cleaner energy mix in China; and 4) the growing electrification of energy.”

Senator Murkowski and Ranking Member Maria Cantwell (D-WA) also noted the bipartisan agreement they have reached in the Energy and Natural Resources Act of 2017, S. 1460.  The new bill builds on the Energy Policy Modernization Act of 2015, which passed the Senate with 85 votes but was not taken up by the House of Representatives at the end of last year. House Energy & Commerce leaders are turning this week to Department of Energy restructuring and reform priorities, as well as expiring energy tax credits.

To view an archived webcase of the hearing visit: https://www.energy.senate.gov/public/index.cfm/hearings-and-business-meetings?ID=17EC6C2F-F572-4E03-8DB1-C07F6339557E

For more information on the Senate’s energy package, S. 1460, visit: https://www.energy.senate.gov/public//index.cfm//bipartisan-energy-bill