Energy investment on pace for record decline, IEA analysis says
by Clyde HughesThe Rev. Daryl Gray of the Clergy Coalition hands out face masks at the Lively Stone Church of God in St. Louis on May 26. Over 125,000 masks were distributed to churches planning to reopen in June. Photo by Bill Greenblatt/UPI | License PhotoA lifeguard keeps an eye on swimmers, making sure they social distance while enjoying the water at the Wapelhorst Aquatic Facility in St. Charles, Mo., on May 26. Photo by Bill Greenblatt/UPI | License PhotoSeveral swimming facilities in the St. Louis area have opened due to extra restrictions because of the pandemic. Photo by Bill Greenblatt/UPI | License PhotoStylist Katie Winston (R), cuts the hair of customer Dee Broderick on the sidewalk outside the 7-0-3 Salon in Chesterfield, Mo., on May 26. Although stylists and customers wear masks, the salon has offered customers the option of haircuts outdoors, for those who may have coronavirus concerns. 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The popular restaurant has reopened after four weeks. Photo by Bill Greenblatt/UPI | License PhotoA mother and child wear protective masks as they walk down a street in Paris on May 12. Photo by Eco Clement/UPI | License PhotoFrance has cautiously begun to lift its lockdown this week with shops allowed to reopen, including in the capital, which still faces tight restrictions. Photo by Eco Clement/UPI | License PhotoBritish Prime Minister Boris Johnson claps outside Downing Street in London to show his support for key workers during the coronavirus pandemic on May 7. Doctors released Johnson from the intensive care unit in mid-April after he spent about a week in the hospital with COVID-19 Photo by Hugo Philpott/UPI | License PhotoShoppers wear masks in the Mahane Yehuda Market in Jerusalem on May 7. Photo by Debbie Hill/UPI | License PhotoA security guard checks the temperature of a woman before granting her entrance to the Rami Levy Atarot Mall near Jerusalem. 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The shop on Historic Main Street has reopened with other selected businesses after being closed for nearly two months by an emergency state order aimed at stopping the spread of coronavirus. Photo by Bill Greenblatt/UPI | License PhotoJeweler Tom Wapelhorst arranges a display in his front window at Walters Jeweler in St. Charles. Photo by Bill Greenblatt/UPI | License PhotoDon (L) and Robin Piatt sit on an elevated outdoor porch, toasting each other on their wedding anniversary, at Lewis and Clark's Restaurant in St. Charles. Photo by Bill Greenblatt/UPI | License PhotoCustomers have lunch inside El Toro Mexican restaurant in Clute, Texas on May 3. Photo by Trask Smith/UPI | License PhotoRestaurants in Texas were allowed to reopen their diving rooms at 25 percent capacity starting on May 1 as the state began easing restrictions based on COVID-19. Photo by Trask Smith/UPI | License PhotoA customer looks at merchandise inside the Boot Barn clothing store in Lake Jackson, Texas on May 3. 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Photo by Debbie Hill/UPI | License PhotoPedestrians no longer practice "social distancing" but continue to wear protective face masks while visiting a popular entertainment district in Beijing on April 26. Photo by Stephen Shaver/UPI | License PhotoFlorida has allowed some of the states beaches to reopen, including this one along the Space Coast near Cocoa Beach on April 26. Photo by Joe Marino/UPI | License PhotoA couple from Central Florida stroll along the surf near Cocoa Beach. Photo by Joe Marino/UPI | License PhotoA child wades in the ocean at Cocoa Beach. Photo by Joe Marino/UPI | License PhotoPedestrians walk closely together in Beijing on April 19. Photo by Stephen Shaver/UPI | License PhotoNewlyweds pose for wedding photos without wearing protective face masks as the government has declared the peak threat of the COVID-19 outbreak has passed in Beijing on April 19. 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May 27 (UPI) -- Global energy investment could sink to its lowest level in history due to fallout from the coronavirus pandemic, the International Energy Agency said in an annual report Wednesday.
The World Energy Investment report said it expects travel and other restrictions to lead to an investment drop it called "staggering in both scale and swiftness."
"The baseline expectation for 2020 is a widespread global recession caused by prolonged restrictions on mobility and social and economic activity," it states.
"Oil is bearing the brunt of this shock because of the curtailment in mobility and aviation, which represent nearly 60 percent of global oil demand," it added.
"After oil, the fuel most affected by the crisis is set to be coal. Coal demand could decline by 8 percent."
The pullback in energy spending cuts across all sectors, from fossil fuels, renewables and efficiency, the report said.
"It means lost jobs and economic opportunities today, as well as lost energy supply that we might well need tomorrow once the economy recovers," IEA Executive Director Faith Birol said in a statement. "The slowdown in spending on key clean energy technologies also risks undermining the much-needed transition to more resilient and sustainable energy systems."
The report assesses trends in global energy investment through mid-May, including individual projects, interviews with energy leaders and investors and the industry's most recent analysis.
"A combination of falling demand, lower prices and arise in cases of non-payment of bills means that energy revenues going to governments and industry are set to fall by well over $1 trillion in 2020," the IEA said. "Oil accounts for most of this decline as, for the first time, global consumer spending on oil is set to fall below the amount spent on electricity."
There have so far been 5.6 million COVID-19 cases worldwide and 350,800 deaths, according to Johns Hopkins University. Many countries are still under strict national and international travel restrictions, which is driving down energy use.
"Now in its fifth edition, the World Energy Investment report is the annual IEA benchmark analysis of investment and financing across all areas of fuel and electricity supply, efficiency, and research and development," the agency said.
"The energy industry that emerges from this crisis will be significantly different from the one that came before."
