While there are enough oil reserves across the world, resources nationalism, misappropriation of invested money, and other factors have hampered sufficient cash from flowing into new oil projects.
Recent high oil prices have prompted some countries to call for an output hike from the Organization of the Petroleum Exporting Countries. OPEC countries, however, have only partly addressed these calls, saying speculative buying is responsible for the rise. This has angered consumer countries, leading to calls to dissolve OPEC.
But Tanaka didn't blame the cartel. "Since we are not OPEC, we cannot tell them what to do. It's their decision," he said.
The IEA, the energy security watchdog of the Organization for Economic Cooperation and Development, May 13 cut its forecast for global oil demand growth this year for the second consecutive month, citing increasing evidence high prices were hurting demand in the U.S. and Europe.
Emissions Tanaka, reiterating past warnings, said countries around the world would have to jack-up spending on measures to cut carbon emissions, which are set to rise by 130% from current levels by 2050 if policies in place aren't changed.
The IEA chief said investments of $100 billion to $200 billion a year in the coming decade, and $1 trillion to $2 trillion a year in later decades, will be needed in measures like energy efficiency and carbon capture programs and new nuclear plants to cut carbon emissions in half by 2050.
