Energy Sector Will Never Be The Same
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Started by metmike - June 15, 2020, 1:16 p.m.

IEA: The Energy Sector Will Never Be The Same Again


https://oilprice.com/Energy/Energy-General/IEA-The-Energy-Sector-Will-Never-Be-The-Same-Again.html?utm_source=browser&utm_medium=push_notification&utm_campaign=vwo_notification_1592258526&_p_c=1


What the agency expected last year was that total energy investment (fuel, power, end use and efficiency) would grow by 2%, the largest annual rise in six years. Now it is expected to fall from $1.9 trillion to $1.5 trillion, a 20% decline in 2020 compared to last year. Of course, this decline – the largest recorded – is due to the pandemic and the shocking fall in energy sector revenues (government and corporate), which are likely to fall by over $1 trillion this year.

The losses are astounding. In the oil and gas sector, upstream investment is expected to drop from $483b last year to $347b in 2020; a drop of almost one-third as the industry adjusts to the sudden drop in demand. All of the major and national oil companies have cut planned spending. Similarly, investment in coal production is anticipated to fall 25% this year, although the report notes that the coal sector may not be facing a sudden crisis, as approvals of new coal-fired power plants this year are twice the rate of last year, mostly for new plants in China. 

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