IEA projects record drop in energy investment pertaining to coronavirus

The International Energy Agency (IEA) that is based in Paris, on May 27, said that the energy industry is set to suffer a record drop in investment due to the coronavirus fallout.

The IEA added that while renewables are likely to fare better than oil, any swift economic recovery could create a global fuel crunch.

In its annual report on energy investments, the International Energy Agency (IEA) estimated the plunge will be of the order of one-fifth from 2019 levels, or almost $400 billion, as firms slash spending amid slumping demand for energy.

IEA Director Fatih Birol said, “All the energy sectors-oil, gas, renewables-everything is affected but the biggest impact is on shale oil.”

“Total oil investments we expect to decline one third this year whereas the shale industry will see a decline of about 50 per cent,” he added.

Shale oil producers have projected the United States to the world’s top crude nation.

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