Global Oil Consumption to Fall by $17t Due to Pandemic: IEA

Consumers’ oil expenses will drop by US$1 trillion in 2020 to US$2.5 trillion as a consequence of the pandemic-related quarantine measures taken globally, the International Energy Agency (IEA) wrote Wednesday in its report on energy investment.

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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 percent, or almost US$400 billion, compared with 2019. 

Prior to the outbreak, its experts projected energy investment to rise by two percent 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 US$1 trillion in 2020," according to the report.

Investment in the oil and gas sector is expected to drop by 32 percent, or by almost US$250 billion, whereas investment in the coal industry - by 15 percent, or by almost US$20 bln. Overall, global energy will be short of 20 percent of investment compared with the previous year as they will decline to US$1.5 trillion, the Energy said.