Consumers’ oil expenses will drop by $1 trillion in 2020 to $2.5 trillion as a result of the pandemic-related quarantine measures globally, the International Energy Agency (IEA) wrote in its report on energy investment on Wednesday.
After the Covid-19 crisis brought large swathes of the world economy to a standstill in a matter of months, the Agency now expects global investment to plummet by 20%, or almost $400 bln, compared with last year. Prior to the outbreak, its experts projected energy investment to rise by 2% in 2020, which could have become the largest investment growth since the 2014 crisis.
“A combination of falling demand, lower prices and a rise in cases of non-payment of bills means that energy revenues going to governments and industry are set to fall by well over $1 trillion in 2020,” according to the report.
Investment in the oil and gas sector is expected to drop by 32%, or by almost $250 bln, whereas investment in the coal industry – by 15%, or by almost $20 bln. Overall, global energy will be short of 20% of investment compared with the previous year as they will decline to $1.5 trillion, the Energy said.