Novak: "Investments in oil industry to decrease by 1/3 this year"

Novak: "Investments in oil industry to decrease by 1/3 this year"
  • Clock-gray 15:18
  • calendar-gray 02 July 2020

Global investments in oil industry will decrease by 1/3 this year, as a result of decrease of demand in the background of novel coronavirus pandemics, said Energy Minister of the Russia Alexander Novak said at the international conference, entitled "Global energy and international political risks", jointly held by Center for International Relations Analysis and Valdai International Discussion Club virtually, APA-Economics reports.

According to him, global economy has faced with a shock as a result of the coronavirus pandemics. According to the different assessments, global GDP is forecasted to decrease by 5-6% this year. Demand for oil in the world has severely decreased.

"We saw decrease of 25-28% in April (daily about 28 mln. barrels). Surely, it seriously affected investments in the fuel-energy complex. I think, investments have decreased by 1/3", noted the Minister.

He said that decrease of global demand has cause increase of oil reserves and according to calculations of the Minister, increase of reserved for this period has made up 1 bln. barrels.


Emil Ismayilov

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