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IEA warns that the reduction of investment may lead to a sharp rise in oil prices

according to the Los Angeles Times on May 22, Fatih Birol, chief economist of the International Energy Agency (IEA), said on May 21 that the vigorous development of medium and long-range air transport is due to the oil companies' substantial reduction of investment in new oil production necessary to meet the needs of China and India with rapid economic growth, Oil prices are likely to return to "very high" levels

Birol, chief economist of the International Energy Agency, told the associated press that in order to save money at the time of the global financial and economic crisis, global oil companies have so far cancelled at least $170billion of planned investment characterized by simple operation, including $100billion this year

Birol said that the $170billion reduction in investment in new oil production means that the world will reduce its oil production by 2million barrels a day in the future

Birol said that oil companies are likely to announce more investment cuts in oil and gas production in the coming months

Birol said that if demand rebounds when the investment in oil supply decreases significantly, the oil price is likely to be much higher than the current level in the next few years

Birol added that if this is the case, it is undoubtedly bad news for the global economy, which is still very fragile at present

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