2008. Id like to provide specific welcome this morning to our new member, senator smith. It is good to have yes part of the committee. I think youll find that this is a committee that does good work it would like to focus on policy, and would like to do things in a bipartisan way every now and again. So looking forward to starting the new year off with that good foot. We dont have senator capito with us this morning but she is also returning to our committee and i look forward to welcoming her and her ongoing contributions. We do have a lot on our agenda today. Our broad Bipartisan EnergyNatural Resources bill where again were looking forward to continuing that as the year progresses to our efforts to increase our nations mineral security, our need for wildfire funding fix, for Street Management reform, innovation, islands and territories. With a wide range of public lands come so theres just do the things that we have on deck for this new year. We were probably have a lighter attendance this morning. I think many members are still returning to washington ahead of this evenings vote, but i truly thank you, dr. Birol, for your attendance this morning. I think as i mentioned to you we look to the iea for its guidance, for its forecast, or better understanding of what is happening around the world. And so you being here this morning to upset the state for the year and provide your agencies perspective on the domestic and Global Energy outlook is greatly greatly appreciated. The good work done by the iea helps to identify Market Trends and provides valuable information to guide policy decisions both here in the United States and around the world. Ieas insight and analysis helps us move our policies in the right direction. And in turn our work helps the iea with its core mission, or modi to Energy Security, cooperation stable markets. We cannot emphasize to strongly have significantly the role of the United States has evolved in recent years. As dr. Birol notes in his prepared statement he says the United States has become the undisputed global oil and gas leader. Now, during my time here on the committee both as Ranking Member and as chair, weve gone from discussing the need to cite lng import terminals all along arcos to now expediting lng export terminals. Weve gone from lamenting our reliance on foreign oil and thea steep price of that oil to the United States in the worlds swing producer and an air of abundant energy. Technology innovation and the shale revolution that led the way and the administration is regard to reduce barriers to energy development. Allowing for increased exploration and production in the United States as we did at the end of last year with the opening of alaskas 1002 and he will provide for a longterm security and allow us to extend our influence in world markets. At the same time we know these markets are cyclical and 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 Global Oil Supply could lag after 2020 if new investments are not made in the near term. Thats a warning for all of us. I know the iea is continue to conduct Significant Research on this matter and i look forward to delving deeper into that this morning. Although the iea was established on the premise of cooperative oil security, the agency is also evolved and expanded its mission to cover wide range of Energy Related topics. These include Energy Efficiency, the digitization of energy, and one that i am particularly interested in and thats the Cost Reduction in Renewable Technologies which portend neighbor unto major shift in how we use energy. Our committee has examined these topics largely to a domestic lens, so today with the benefit idea of an international perspective, a broader view that ties together world trends and events. We certainly look forward to it. So again dr. Birol, thank you for taking time this morning to come and testify. We know your schedule is very, very busy and you travel from paris and we appreciate your willingness to share your expertise in the work of the iea with our committee. With that i turned to senator cantwell for her opening comments. Thank you, madam chair, thank you for scheduled twoday shipping for coupling think i did suggest at 11point that we visit dr. Birol instead but we work on that. We were not able to do that but i so appreciate him being here today and for the discussion on the iea primary focus on increasing Energy Security for its member nations and i appreciate his continued focus on expanding the definition of Energy Security as well. Because Energy Security means more than just oil and gas flowing in and out and across borders. And also meet protecting Critical Infrastructure from attacks and the cybersecurity attacks that event much of the subject of a lot of the past administrations focus on quadrennial review and but we need to do to upgrade that an upgrade the security of our nation. We must take action to protect her Critical Infrastructure from cybersecurity attacks and ensure the security of energy. A good and networks are under constant Cyber Attacks from 2012 in 2016, reported Cyber Incidents against you is Critical Infrastructure more than doubled pics and now that our vulnerabilities have been exposed by various attempts including russians to attack a electricity grid, Cyber Threats to longer just a threat. We have been hacked and we must take additional steps to protect our energy infrastructure. I very much appreciate the chair master, to the Pacific Northwest to see some of the latest and greatest both technologies and approaches to cybersecurity, and she and i have worked on legislation and we passed out of the senate. We are just hopeful that sometimes our colleagues in the house will make this a priority and move forward on working in a bicameral basis on cybersecurity since its infrastructure so important. Obviously diversify our energy mix is another key part of the Energy Security puzzle, and security needs minimizing the consequences of Climate Impact which threatens our wellbeing at home and around the world as well. Investing in Renewable Energies and putting away from fossil fuels and moving it to Energy Efficiency in ways to drive down costs. Weve seen great, great examples of a for getting the right terminology, but the fact that the Energy Savings from Energy Efficiency is continuous flow of investment into business that makes them even more competitive which then allows them to be on a competitive basis. Those numbers on Energy Efficiency as we look at everything from the Bullitt Foundation building to a focus on how to make more these developments worldwide very, very exciting. Technology that we are very proud from the Pacific Northwest. Northwest. According to the iea is world Energy Outlook, renewable will make up twothirds of the global electricity as they become the cheapest source of generation. The cost of new solar has come down 70 . The wind by 25 and battery costs by 40. So Energy Efficiency as a just mention is also a key on the Energy Security side and having the ability to use more than double according to iea without Energy Efficiency so this is been saving us in so many ways. As you noted, i think its onethird the cost to develop a kilowatt to say become and develop it. Its so important we continue that. While we discussing socalled Energy Dominance and Energy Security hope will hear a lot less about just these exporting issues although again we work hard on the committee to come up with strategies a clip of what our National Policies were on that, and focus on what we can do to again try the cost effectiveness of energy. Whoever has the most costeffective Energy Solutions are going to continue to win in the marketplace. I look forward to hearing your comments on that today and again thank you for being here. Thank you, senator cantwell. Dr. Birol, welcome again to the committee. For those who are not familiar with dr. Birol, he took office as iea executive director in september of 2015 after 20 years with the agency itself. Previously dr. Birol held the position of chief economist with responsibility for directing the flagship world Energy Outlook publication. Hes been the found and the chf the iea Energy Business council. He has a whole series of accolades and awards that have been conferred upon him over the years, and again dr. Birol, we appreciate the insight that you will provide for us and the good work of your team at the International Energy agency. We welcome you and we invite your comments this morning. Typically ask those who are testifying before the Committee Try to limit the comets to five minutes. Because you are the sole panel before us, i welcome your extended remarks and then will have an opportunity to query you with regards to other issues. So thank you, and good morning. Madam chair, Ranking Member cantwell, distinguished members of the committee. Thank you very much for the opportunity to appear before you today and present the International Energy agency workers. We wish everybody a happy new year. For the International Energy agency, 2017 was a very successful year, a year of growth and continued success. The highlights of our success with your 2017 was that in november, our ministers across the world came together together with Business Leaders to discuss Global Energy issues, challenges, how they see the challenge in Different Countries and provide guidance to International Energy agency. I would like to thank the u. S. Government, especially secretary perry for his personal engagement throughout our ministerial meeting. Several businesses join our meeting at least part of it, several ceos from the United States join us, ceo of exxon mobil, general electric, ceo of dow chemicals another ceos shared across the world and we had a wonderful ministry the meeting with a very good discussion. I will not reflect some of the discussions today. Before going to some of our coats and funny i would like to just very briefly, madam chair, if i may tell you what iea is all about. We were founded in 1974, in the wake of oil crisis. Basically by mr. Henry kissinger himself, and several other statesmen across the world. And we are now 43 years old. The motivation was the oil security, to look after the ol security issues, fighting at oil security mechanism across the world. But throughout these years a mandate has evolved as madame chair mention. Look at the oil, gas, renewables and Energy Efficiency in alignment to issues of investment and look at all the technologies, i. E. A unique organization which looks all the technologies and the implications for the markets and our wellbeing. We have several member governments in all the continents, and energy [inaudible] in many countries, so we tried to bring some information for the government, for the decisionmakers to discuss, to debate and come up with hopefully solutions for the countries and for their citizens. Now, to provide a basis for our discussion i would like to tell you how we see the Global Energy markets in the next years to come. And i will highlight four major trends which will affect all of us. I would like to say that countries, even the United States, one of the most Important Energy countries in the world, even the United States is not an island. Other countries affect all of us, as i was showing will affect everybody else. So, therefore, these four major trends, a peoples peoples we call them, affect all of us in the next years to come, given the size of the changes at also the speed of those changes i think it is important for all of us to take note of them. But that is four major upheavals which i would transfer Energy Markets, and some of the definitions, discussion we used to know but perhaps we need to change it now. Number one, madam chair mentioned, United States set to become the undisputed leader of portland Gas Production for many years to come. With huge implications. This is number one. Number two, the host of Renewable Energies are going down so significantly that they are becoming the first choice of power come near power plants in several countries across the world. And these choices are not necessarily driven by concerns, but only for the [inaudible] because of becoming very cheap and when isa renewables this is mainly solar and wind. This is number two. Number three, china. China recently changed its economic policy, namely, moving from being an industrial workshop, workhouse, manufacturer, slowly but surely to [inaudible] and with new model making the skies of china blue again. China is moving in the direction of clean energy, which will help major implications for all of us, even the sheer size of the chinese markets. When isa clean energy, this is gas, renewables, Nuclear Power and others. Fourth and the last of people of people. Within the system, energy, the share of electricity is going very strongly. Electricity consumption is growing much faster than oil and gas and coal, everything, our lives, our socialist, economic lives are becoming more connected. So these are the four major upheavals that we see very important. If i can elevate them and put in the is, perhaps most important one, to the end of these for important upheavals, starting with a Clean Energy Technologies. As chair of the mentioned the cost of solar felt unsubstantial. In the beginning [inaudible] a special European Countries subsidize the solar, but now especially in emerging countries, especially china pushed solar pv and theres a concept in the economy, learning by doing. The more you do something, the better you do it and the cheaper you do it, and the cost of solar is now going very, very low levels. The second [inaudible] its going down and in addition to industrial countries, major growth of renewables are coming from, today, emerging countries, especially china and india are the leaders. If china is the date number one country in terms of solar and number one country in terms of wind. And when we look at the future, we see that the cost of solar and wind continued to decline, and theyre going to compete very soon in subsidies and competing with the traditional sources of electricity. This is something important, and why china and others are pushing solar. It is not necessarily as some people may think for primary reason is not Climate Change. Primary reason is because it is cheap. And the second is that another issue a special in china and india is the city, local pollution in the cities, to reduce the local pollution, those countries are pushing solar and wind and they are becoming cheaper and cheaper. We are seeing a bit of growth of solar and wind in the next years to come, and if i can give you one number, give us something to focus, in the year 2016, of all the power plants built in the world, solar alone was more than 50 . Solar, other 50 , other renewables plus call plus oil plus gas postnuclear put together, 50 , other 50 solar capacity alone. This is something that we need to take into consideration. I should also mention that the renewable electricity especially solar and wind also has a shortcoming. Namely, they are very much [inaudible] to weather conditions in india when the family comes home, the first thing do is turn on the evening from work, turn on the air condition, turn on the television when there is no sun. So it is difficult, not very easy i should say, to match the sun [inaudible] and there are some technologies were working on, and others are working on it. But to sum up, it is coming stronger and cheaper. Another point is on electricity as i said, electricity is going very strongly everywhere. Electricity consumption grows