Syed Rashid Husain The guru has made history! In one of the rare occasions that the head of an international organization has been selected from within its ranks, Fatih Birol, a professional to the core and having risen from within the Paris-based International Energy Agency - without flaunting any political heritage - is all set to take over the IEA as its next executive director. Formed in 1974, in the immediate aftermath of the Arab oil embargo, by the likes of none other than Henry Kissinger, the OECD energy watchdog, the IEA's initial role was to help the member countries co-ordinate a collective response to major disruptions in oil supply. Some felt that it was to balance the political and market influence of Opec on the energy world and to safeguard the interests of the consuming nations - the industrialized world. With the passage of time, though, the IEA has emerged as center of the energy world. Birol will replace the current head of the IEA Maria van der Hoeven when her term expires on August 31. She too moved to Paris with solid political backing. And this was not something unusual. Generally the IEA executive directors are high-ranking former officials of member states. Before taking over the IEA, Maria van der Hoeven served as the Dutch Minister of Economic Affairs from February 2007 to October 2010. The IEA elects an executive director, the main public face of the organization, every four years for a maximum of two terms. Birol is one of the most experienced and respected figures in world energy fraternity today. He has been working at the IEA since 1995, most recently as its chief economist and director of global energy economics. He was with the Opec before joining the IEA in 1995. The 56-year-old Turkish national, Birol also oversees IEA's flagship publication, the ‘World Energy Outlook,' the influential and eagerly awaited strategic analysis of the energy world. Looking into their crystal ball year after year, Birol and his team has been coming out with their analysis of the energy world. This year's 726-page edition warned the energy world of major problems lying ahead if investment into new sources of hydrocarbons lag behind due to the current slump in oil prices. None can deny, he has a point. Birol has been a heavyweight of the energy fraternity for last many years. One vividly recalls him being referred to as one of the most influential energy personalities of the world by The Forbes magazine in 2009. In an article, T. Boone Pickens, selected Birol as number four of the seven most influential people of the energy world. And indeed, no surprises, the late King Abdullah was at the top of the list - the most influential person of the energy world then. Birol is also the recipient of numerous awards from all around the globe. He has been the founder and chair of the IEA Energy Business Council, providing a forum to enhance cooperation between the energy industry and energy policy makers. It is now being highlighted all around, that Birol was selected with the support of all IEA member states. None opposed his elevation. He reportedly applied for the top slot in the IEA late in 2014 and evidently had only one serious competitor for the job, a candidate from Greece. But people familiar with the selection process told the Financial Times that this anonymous contender didn't have the support of leading members of the IEA, including Japan and the United States. Birol had all the support from all the stakeholders. A statement from the Turkish Foreign ministry, welcoming the appointment, referred to him as being “the first executive director in the history of the IEA who had been elected with the support of all member states.” This was definitely another vivid depiction of the confidence he enjoyed within the energy fraternity. And Birol is mindful of this. In an exchange of messages with this correspondent, on being selected as the next Executive Director of the IEA, Birol politely conceded, “yes, it was a unanimous decision of all our member governments - a historic first time.” Well done guru! But late last year, when his submission for the position came to fore for the first time, some felt his candidacy to the top position at the International Energy Agency could be controversial due to his previous roles at Opec. The Telegraph in one of its pieces on the issue late last year said “Mr Birol who has previously worked at Opec, could prove to be a controversial candidate with some of the IEA's governing board due to his former links with the oil producing cartel, which controls a third of the world's supply.” Yet in a turn of events, his previous exposure to the Opec turned out to be an asset. While announcing his selection, the IEA itself referred to Birol's past experience with Opec as “giving him a unique perspective on the producer-consumer relationship”. Everyone else too seem to be publicly condoning the selection. US Energy Secretary Ernest Moniz while welcoming Birol as the next Executive director of the International Energy Agency, said: “As the new Executive Director of the International Energy Agency, Dr. Fatih Birol is an ideal candidate to lead the Agency in a time of global energy transformation. His deep knowledge of energy markets, global energy forecasts, and climate change mitigation and adaptation challenges have made him an internationally known leader in the energy field.” None can indeed challenge it! While welcoming Birol at his official residence last Monday, Prime Minister Shinzo Abe of Japan congratulated him on recent appointment as the next IEA Executive Director and expressed his expectation that under his leadership the IEA would help Japan improve its own energy policy, while also making a strong contribution in overcoming global energy security and climate change challenges. He reassured Birol that the work of the Agency would have Japan's continuous support. “An outstanding choice, given his experience, knowledge, and the fact that he is very personable,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts told Bloomberg. Birol has “a very cordial relation with his counterparts in OPEC,” he pointed out. Despite some disagreements, Birol is well-known and indeed a professionally respected figure in Riyadh and Dhahran too. Welcome Fatih to this very challenging assignment in an era of major tumult and transitions encompassing the entire energy world!
