IEA: 2020 global energy investment may drop by 20%

On May 27, the IEA released the "Global Energy Investment Report" to make the above prediction. The IEA expects that global energy investment will drop sharply by US $ 400 billion this year, a year-on-year decrease of 20%. "The scale and speed are amazing."

Among them, global oil and gas investment will fall by 33% year-on-year, while investment in the US shale oil sector will drop by 50% year-on-year; investment in the power sector will fall by 10% year-on-year.

This report is far from IEA's previous predictions. In January, the IEA predicted that the growth rate of global investment in the energy sector will reach 2% in 2020, which will be the largest annual investment increase in the past six years.

The report pointed out that the primary reason for the reduction in global energy investment is the reduction in demand and income leading to investment reduction, especially in the oil industry where oil prices have plummeted. Secondly, the blockade during the epidemic resulted in restricted circulation of personnel and goods and caused damage to investment activities.

The downward trend in global oil and gas investment may continue into 2021. The report shows that in 2020, global investment in the oil and gas sector will be reduced from US $ 756 billion in 2019 to US $ 511 billion, and its share of global energy investment will be reduced from 40% to 34%.