Meeting the world’s energy supply needs by 2035 will require $40 trillion of investment, as demand grows and production and processing facilities have to be replaced, the International Energy Agency said, Bloomberg reported on June 3.
More than half of that amount will be needed to compensate for declining output at mature oil and gas fields, and the remainder on finding new supplies to meet rising demand, the Paris-based agency said in a report today. The world will increasingly rely on countries that restrict foreign companies’ access to their oil reserves, as North American shale output tails off from the middle of next decade, it predicted.
“Declines and retirements set a major reinvestment challenge for policy makers and the industry,” said the IEA, which advises 29 of the most industrialized nations on energy policy. “In the case of oil, the focus for meeting incremental demand shifts towards the main conventional resource-holders in the Middle East as the rise in non-OPEC supply starts to run out of steam in the 2020s.”
Copyright: Bloomberg, 2014