Thierry Oger, right, a production manager for Canadian based Vermilion oil company, and Jean-Pascal Simard, head of public affairs, warcht an oil rig, Wednesday, Sept. 6, 2017 in Andrezel, south east of Paris . France’s government has unveiled a law to ban all production and exploration of oil and natural gas by 2040 on the country’s mainland and overseas territories. The move is largely symbolic, however, as France’s oil and gas production represents just 1 percent of national consumption _ the rest is imported. (AP Photo/Thibault Camus)

MOSCOW, May 27. /TASS/. 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.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Epidemic’s impact on economy to be ‘manageable’

SIIS: Harm will not be far-reaching if outbreak under control by March-end The COVID-19 epidemic’s overall impact on the Chinese economy will be manageable as the number of new cases has been steadily declining recently across the country, including in…

Judge grants Amazon motion for pause in Microsoft’s Pentagon contract work

WASHINGTON (Reuters) – A U.S. judge on Thursday granted Inc’s request to temporarily halt the U.S. Department of Defense and Microsoft Corp from moving forward on an up-to-$10 billion cloud computing deal that Amazon says reflected undue influence by…

Stocks stall and dollar squeezed as investors wait for stimulus

SINGAPORE (Reuters) – U.S.-China tension and sobering economic data knocked momentum out of Asia’s stock markets on Thursday, though the hope of stimulus staved off falls and kept pressure on the dollar as investors wait for Congress to agree on…

Wall Street plunges at the open as pandemic fears heighten

(Reuters) – U.S. stocks opened sharply lower on Friday as investors dumped equities amid a rapidly spreading coronavirus outbreak, which has raised fears of a possible global recession. The Dow Jones Industrial Average fell 495.81 points, or 1.92%, at the…