Crude's watchdog ready to bark



Fatih Birol, his glasses twitching below bushy eyebrows, is standing at a podium in Abu Dhabi. He is the "Cassandra of crude".

His mission: to warn of the dangers of using too much energy. It is a position he takes around the world, speaking to whoever will listen. His mantra: "One day, we will run out of oil."

Dr Birol is the chief economist of the International Energy Agency (IEA), the Paris-based organisation that represents the interests of 28 oil-importing nations. Dubbed "one of the most powerful men in the world", he can make or break markets and lead to changes in government policy with a word about oilfield output.

"I make all my statements based on the evidence," Dr Birol says. "We are considered to be a watchdog, the IEA, and a watchdog fulfils its task only if it barks. So I bark when I think there is a need for barking."

At the same time, Dr Birol - the only person known to have worked both at the IEA and its rival Opec - has cast himself as an ambassador between producers and consumers. That represents a change from the IEA's stance when it was created in response to the 1973 oil crisis to challenge the ability of Opec to effectively set the price of oil through production cuts.

"Opec's matured a bit over the last couple of decades," says Caroline Bain, a senior analyst with the Economist Intelligence Unit in London. "There's much more collaboration going on between producers and consumers than there would have been 20 years ago."

Dr Birol, 52, will be the IEA's voice of continuity as it prepares for a change in leadership. The executive director, Nobuo Tanaka, will leave in August after four years representing oil-importing nations - although the "alarming messages", Mr Tanaka says, are Dr Birol's domain. Those messages have become even more alarming with oil prices above the psychological barrier of US$100 - high enough to stifle the global economic recovery, Dr Birol warns.

"What we are doing here is to try to get the numbers, data, analysis, and make statements which are sometimes perhaps a little bit too tough to make," he says. "But it is the job that was given to me, to say the truth. And the truth may not be always sweet."

The economist's story begins in Ankara, the Turkish capital that plays Washington DC to Istanbul's New York. Born in 1958 to a housewife and a professor of medicine, he grew up playing football and developing a love for Turkey's teams.

He moved to Istanbul to study power engineering, which led to a chance to study energy economics in Vienna. But the young Birol was reluctant to leave his home country. His parents urged him to go.

"It was very difficult," he recalls. "Several times I thought, especially when I was in Vienna studying, I thought I cannot do it, I need to go back." He began a ritual of calling his parents every day - a habit that survives today. "I need to hear that they are OK," he says. "I need to hear their voice, even if it's just for a couple of minutes."

After his doctoral studies, he joined Opec's economic analysis team. But Dr Birol still wanted to represent his home country, so six years later he moved to the IEA. It is rather like moving between Manchester United and Manchester City football clubs: not unprecedented, but not always popular.

"His experience in Opec certainly helps," says Mr Tanaka. "He knows the producer-side ideas and concepts and models, and he can use these experiences in our work."

Dr Birol brought another asset to the IEA: experience scoring for Opec's football team. The teams have never played against each other, but, he says, "it would be an interesting match".

He continues to play for the IEA's team as honorary captain. "The young people are very kind to me to pass the ball," he says.

His passion for football and his home country made it to the cover of World Energy Outlook, the annual forecast on oil supply and demand that many governments use as a handbook for forming national energy policy. When Dr Birol moved into the chief economist's office, he changed the cover's colour from dark blue to red and yellow, the colours of his favourite football team, the long-established Turkish club Galatasaray.

"After I took over … it started to become a very important book - but most important are the colours of my team in Turkey," he says, proudly. "I love football, and I love my work."

Aside from football matches, his indulgences are simple: five newspapers at the weekend and summer vacations every year with his parents in Istanbul. "We have very strong family ties," says Dr Birol, whose only brother recently retired from the oil major BP in Turkey. "Since we are two boys and I am the older one, so I have the responsibility of taking care of the family."

These days he flies from Paris to Tokyo, Abu Dhabi to Davos, diagnosing a world economy he believes has grown sick from excessive fossil fuel consumption.

Savouring his record of predictions, he recites a couple of successful forecasts: "At the beginning of this year when the prices were $90, I said that the oil prices are entering a danger zone, which we are seeing now … In the year 2007, I said that China may soon be a coal importer. At the time many people didn't believe us because China was exporting coal. And now China very recently became a major coal importer, and the coal prices have more than doubled."

But his record has not been spotless. In 2008, the year the oil price hit an all-time high of $147 a barrel, his World Energy Outlook almost doubled estimates of the rate of global oilfield output decline.

"You don't really expect radical statements from the IEA," says Ms Bain. "Their job is not to shock the market and lead to prices that would not reflect fundamentals. Their job is to keep the market calm. They're not a force to reckon with that Opec would be, because Opec can do something to physically change the market, whereas the IEA can [only] talk." When the IEA talks, she says, it follows a set script - including Dr Birol. "He may be a very colourful character, but when I see him at conferences he plays the party line," Ms Bain says. "They're all saying the same thing and they've got the same charts."

One of Dr Birol's pet subjects is the danger of climate change and excessive energy consumption in developed countries. He is so concerned about the limits of the world's resources that he has never bought a car - a small contribution to bringing into balance the developed and developing world's consumption. A favourite statistic of his: the whole of sub-Saharan Africa uses the same amount of electricity as New York City.

"It is morally and economically unacceptable while we in the western countries enjoy so much energy," he says. Seeing that balance of energy consumption shift is the last item on his professional checklist. After that, he can relax - and he has it all planned out.

"At the IEA we receive a lot of job offers from left and right," he says. "But my idea is to go back to Istanbul to have an apartment with a nice view of the Bosphorus, with a terrace, where I can watch the Bosphorus and enjoy the life."

On his dream terrace, he would dine on fish, mezze and raki - and "afterwards, enjoy a very nice cigar".

The specs: 2017 Ford F-150 Raptor

Price, base / as tested Dh220,000 / Dh320,000

Engine 3.5L V6

Transmission 10-speed automatic

Power 421hp @ 6,000rpm

Torque 678Nm @ 3,750rpm

Fuel economy, combined 14.1L / 100km

Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

NO OTHER LAND

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Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

The five pillars of Islam
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1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

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MATCH INFO

South Africa 66 (Tries: De Allende, Nkosi, Reinach (3), Gelant, Steyn, Brits, Willemse; Cons: Jantjies 8) 

Canada 7 (Tries: Heaton; Cons: Nelson)

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

The specs
 
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Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
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A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

Kat Wightman's tips on how to create zones in large spaces

 

  • Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
  • Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
  • Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
  • Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
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Specs

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Notable Yas events in 2017/18

October 13-14 KartZone (complimentary trials)

December 14-16 The Gulf 12 Hours Endurance race

March 5 Yas Marina Circuit Karting Enduro event

March 8-9 UAE Rotax Max Challenge

Results

6.30pm Madjani Stakes Rated Conditions (PA) I Dh160,000 1,900m I Winner: Mawahib, Tadhg O’Shea (jockey), Eric Lemartinel (trainer)

7.05pm Maiden Dh150,000 1,400m I Winner One Season, Antonio Fresu, Satish Seemar

7.40pm: Maiden Dh150,000 2,000m I Winner Street Of Dreams, Pat Dobbs, Doug Watson

8.15pm Dubai Creek Listed Dh250,000 1,600m I Winner Heavy Metal, Royston Ffrench, Salem bin Ghadayer

8.50pm The Entisar Listed Dh250,000 2,000m I Winner Etijaah, Dane O’Neill, Doug Watson

9.25pm The Garhoud Listed Dh250,000 1,200m Winner Muarrab, Dane O’Neill, Ali Rashid Al Raihe

10pm Handicap Dh160,000 1,600m Winner Sea Skimmer, Patrick Cosgrave, Helal Al Alawi

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Director: Namrata Singh Gujral

Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark

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Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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Director: Julian Schnabel

Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen

Three stars