The International Energy Agency (IEA) has published its revised estimates for investments in energy exploration and infrastructure for 2020. In it, the IEA makes some dramatic changes in reaction to the Covid-19 pandemic and the severe drop in fossil fuel prices. They cut the expected investments for 2020 by c. $150bn or about one third. This alone should lead to a significant decline in oil production by 2 million barrels per day in 2025 and a 60 billion cubic metre reduction in natural gas production. Of course, that means that in the next few years it is unlikely that oil and gas prices will remain at current levels. The long-term reduction in production alone should lead to a recovery of fossil fuel prices over the next few years.
We are not investing enough in energy
We are not investing enough in energy
We are not investing enough in energy
The International Energy Agency (IEA) has published its revised estimates for investments in energy exploration and infrastructure for 2020. In it, the IEA makes some dramatic changes in reaction to the Covid-19 pandemic and the severe drop in fossil fuel prices. They cut the expected investments for 2020 by c. $150bn or about one third. This alone should lead to a significant decline in oil production by 2 million barrels per day in 2025 and a 60 billion cubic metre reduction in natural gas production. Of course, that means that in the next few years it is unlikely that oil and gas prices will remain at current levels. The long-term reduction in production alone should lead to a recovery of fossil fuel prices over the next few years.