Oil prices are unlikely to significantly rebound in 2017 against oil sector investment falling – IEA
Almaty. July 7. Silkroadnews – The fall in world oil prices in 2014-2015 hit hard the investments in the sector and led to oil production increase in the Middle East, the report of the International Energy Agency (IEA) states, TASS writes.
According to the IEA experts, if prices remain at the current levels, there is a little hope to see a significant rebound in 2017.
The investments in the oil industry declined throughout 2015 and continued to fall this year as well, the IEA said. Their volume declined by $300 billion, or 42%, over two years. It is the first time for the last twenty years when the investments declined continuously within two years at a stretch. About half of this decline came from the U.S. producers.
The IEA also stressed that the low prices period led to situation when the supply of Middle East oil reached values closed to the historical – 31 million barrels per day. Today the region provides 35% of the global exports. This is the highest level since 1975. The main volume falls to Saudi Arabia, Iraq and Iran, the report said.
Low prices for oil and gasoline have a negative impact on the energy efficiency of the world economy, especially in the transport sector, the IEA experts also note.
