Oil market crisis to push investment in sector down to 13-year low, says IEA

Oil market crisis to push investment in sector down to 13-year low, says IEA
# 15 April 2020 14:53 (UTC +04:00)

The period of falling oil prices will force oil producers to slash investment in exploration and production globally in 2020 to the lowest level in 13 years — $335 bln, according to the International Energy Agency’s (IEA) April Oil Market Report released on Wednesday, APA reports citing TASS.

"Global capital expenditure by exploration and production companies in 2020 is forecast to drop by about 32% versus 2019 to $335 billion, the lowest level for 13 years," the IEA said.

As a result, companies may reallocate part of funds to develop some of the technologies needed for clean energy transitions around the world, the agency added.

A substantial decrease in global oil prices followed the falling global energy demand due to measures to prevent the coronavirus infection spread taken by many countries. The price of oil plummeted to $22 per barrel, the lowest level in the past 18 years.

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