<p>The energy industry is set to suffer a record drop in investment due to the coronavirus fallout, the IEA said on Wednesday, and while renewables are likely to fare better than oil, any swift economic recovery could create a global fuel crunch.</p>.<p>In its annual report on energy investments, the Paris-based International Energy Agency (IEA) estimated the plunge will be of the order of one-fifth from 2019 levels, or almost $400 billion, as firms slash spending amid slumping demand for energy.</p>.<p>Shale oil producers that catapulted the United States to the world's top crude nation stand to suffer the worst decline, the IEA said.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-in-india-news-live-updates-total-cases-deaths-covid-19-tracker-today-worldometer-update-lockdown-40-latest-news-838583.html"><strong>For latest updates on coronavirus outbreak, click here</strong></a></p>.<p>"All the energy sectors -- oil, gas, renewables -- everything is affected but the biggest impact is on shale oil," the agency's director Fatih Birol told AFP in an interview.</p>.<p>"Total oil investments we expect to decline one third this year whereas the shale industry will see a decline of about 50 per cent."</p>.<p>However, spending in renewable power projects is expected to fall by only around 10 per cent for the year, the report said.</p>.<p>"Even though this 'clean' spending is set to dip in 2020, its share in total energy investment is set to rise," it noted.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-india-update-state-wise-total-number-of-confirmed-cases-deaths-on-may-27-842249.html"><strong>Coronavirus India update: State-wise total number of confirmed cases, deaths on May 27</strong></a></p>.<p>But it noted "these investment levels remain far short of what would be required to put the world on a more sustainable pathway," estimating that spending on renewable power would need to double by the late 2020s.</p>.<p>The IEA has long warned that insufficient investment may leave the industry unable to meet rising demand.</p>.<p>"There is a risk that today's cutbacks lead to future market imbalances, prompting new energy price cycles or volatility," it said.</p>.<p>If oil investment stays at 2020 levels then supply in 2025 would be 9 million barrels per day less than had been expected, the IEA estimated, which could mean tight markets and higher prices if demand resumes it pre-crisis rising trajectory.</p>.<p>While some may see a drop in spending on oil as a positive development, Birol warned of negative consequences.</p>.<p>"We hope to see a clean energy transition, this should be an orderly energy transition, well designed so it doesn't cause any crisis, any shock," he said.</p>.<p>"It shouldn't be as a result of Covid, it should be as a result of the right energy policies."</p>.<p>Birol signalled in this regard a concerning jump in approvals for coal projects in Asia.</p>.<p>"The findings of our reports are worrying but my chief concern is that the lockdown we have around the world may lead to a lock in of inefficient and old technologies, especially in the emerging world where there are huge debt and financing problems," he said.</p>.<p>The IEA chief called on governments to favour clean energy projects in their coronavirus recovery plans.</p>.<p>"If the governments include the right energy policies in order to accelerate the clean energy transition, we may well see a rebound in clean energy."</p>
<p>The energy industry is set to suffer a record drop in investment due to the coronavirus fallout, the IEA said on Wednesday, and while renewables are likely to fare better than oil, any swift economic recovery could create a global fuel crunch.</p>.<p>In its annual report on energy investments, the Paris-based International Energy Agency (IEA) estimated the plunge will be of the order of one-fifth from 2019 levels, or almost $400 billion, as firms slash spending amid slumping demand for energy.</p>.<p>Shale oil producers that catapulted the United States to the world's top crude nation stand to suffer the worst decline, the IEA said.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-in-india-news-live-updates-total-cases-deaths-covid-19-tracker-today-worldometer-update-lockdown-40-latest-news-838583.html"><strong>For latest updates on coronavirus outbreak, click here</strong></a></p>.<p>"All the energy sectors -- oil, gas, renewables -- everything is affected but the biggest impact is on shale oil," the agency's director Fatih Birol told AFP in an interview.</p>.<p>"Total oil investments we expect to decline one third this year whereas the shale industry will see a decline of about 50 per cent."</p>.<p>However, spending in renewable power projects is expected to fall by only around 10 per cent for the year, the report said.</p>.<p>"Even though this 'clean' spending is set to dip in 2020, its share in total energy investment is set to rise," it noted.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-india-update-state-wise-total-number-of-confirmed-cases-deaths-on-may-27-842249.html"><strong>Coronavirus India update: State-wise total number of confirmed cases, deaths on May 27</strong></a></p>.<p>But it noted "these investment levels remain far short of what would be required to put the world on a more sustainable pathway," estimating that spending on renewable power would need to double by the late 2020s.</p>.<p>The IEA has long warned that insufficient investment may leave the industry unable to meet rising demand.</p>.<p>"There is a risk that today's cutbacks lead to future market imbalances, prompting new energy price cycles or volatility," it said.</p>.<p>If oil investment stays at 2020 levels then supply in 2025 would be 9 million barrels per day less than had been expected, the IEA estimated, which could mean tight markets and higher prices if demand resumes it pre-crisis rising trajectory.</p>.<p>While some may see a drop in spending on oil as a positive development, Birol warned of negative consequences.</p>.<p>"We hope to see a clean energy transition, this should be an orderly energy transition, well designed so it doesn't cause any crisis, any shock," he said.</p>.<p>"It shouldn't be as a result of Covid, it should be as a result of the right energy policies."</p>.<p>Birol signalled in this regard a concerning jump in approvals for coal projects in Asia.</p>.<p>"The findings of our reports are worrying but my chief concern is that the lockdown we have around the world may lead to a lock in of inefficient and old technologies, especially in the emerging world where there are huge debt and financing problems," he said.</p>.<p>The IEA chief called on governments to favour clean energy projects in their coronavirus recovery plans.</p>.<p>"If the governments include the right energy policies in order to accelerate the clean energy transition, we may well see a rebound in clean energy."</p>