PARIS: The energy industry is set to suffer a record drop in investment due to the coronavirus fallout, the IEA said on Wednesday, and while renewables are likely to fare better than oil, any swift economic recovery could create a global fuel crunch.
“All the energy sectors – oil, gas, renewables – everything is affected but the biggest impact is on shale oil,” the agency’s director Fatih Birol told AFP in an interview. “Even though this ‘clean’ spending is set to dip in 2020, its share in total energy investment is set to rise,” it noted. If oil investment stays at 2020 levels then supply in 2025 would be 9 million barrels per day less than had been expected, the IEA estimated, which could mean tight markets and higher prices if demand resumes it pre-crisis rising trajectory.
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