“ Energy agencies warn investment is needed to avoid a shortfall in world energy supplies.”
“Our message to the oil industry here in Houston is, invest, invest, invest,” Fatih Birol, the executive director of the International Energy Agency, told attendees at the CERAWeek by IHS Markit oil and gas conference. He was far from the only one.
On Monday, Birol’s agency released a report, Oil 2017, which warned that the global oil supply could struggle to keep up with demand after 2020. The reason: a slump in investment in 2015 and 2016 caused by the collapse of world oil prices. While production and investment have picked up recently, IEA said “early indications of global spending for 2017 are not encouraging.”
Oil demand will rise over the next five years, IEA forecasts, passing the 100 million barrels per day threshold in 2019 and climbing to 104 million barrels per day by 2022. Developing economies will account for all of the growth, IEA predicts, with Asia consuming seven out of every 10 extra barrels of oil produced.
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