Energy investment on pace for record decline, IEA analysis says

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The 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 Photo
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A 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 Photo
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Several swimming facilities in the St. Louis area have opened due to extra restrictions because of the pandemic. Photo by Bill Greenblatt/UPI | License Photo
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Stylist 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. Photo by Bill Greenblatt/UPI | License Photo
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Employees wearing face shields and masks work at the Matsuya Ginza department store, which partially reopened in Tokyo on May 25. Prime Minister Shinzo Abe lifted the state of emergency in the city. Photo by Keizo Mori/UPI | License Photo
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People gather at Rye Playland Beach in New York City on May 24. Photo by John Angelillo/UPI | License Photo
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Olivette Lanes owner Don Klackner uses a mop to clean the lanes at his bowling alley in Olivette, Mo., on May 19. Photo by Bill Greenblatt/UPI | License Photo
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Dentist Ronald Sherstoff examines a high-speed drill at his office in Chesterfield, Mo., on May 19. Sherstoff has purchased an air filtration system that destroys airborne viruses that could be caused by the drill, and all staff will use gowns, masks, gloves and face shields to protect themselves. Photo by Bill Greenblatt/UPI | License Photo
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Students wear protective masks as they return to the Yankus Korchak Elementary School in Jerusalem on May 18. Photo by Debbie Hill/UPI | License Photo
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School attendance will be voluntary around Israel and classes returning to session will be at the discretion of local authorities. Photo by Debbie Hill/UPI | License Photo
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Server Tamara Martinez cleans containers at The Soda Fountain containing candy on the first day of operation after reopening in St. Louis on May 18. Photo by Bill Greenblatt/UPI | License Photo
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Soda jerk Ronell McCollum finishes making a Super Shake at the Soda Fountain. Photo by Bill Greenblatt/UPI | License Photo
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Salesman Drew Murphy tries out a new mattress on the showroom floor at Mattress Giant in Richmond Heights, Mo., on May 18. Photo by Bill Greenblatt/UPI | License Photo
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Sales clerk Sarah Rhim stocks shelves with new dresses at Mister Guy for Women Clothiers in Ladue, Mo., on May 15. Photo by Bill Greenblatt/UPI | License Photo
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Bobby Smith (L) and his wife, Boni Smith, enjoy drinks at an open restaurant in Lake Geneva, Wis., on May 15. Photo by Kamil Krzaczynski/UPI | License Photo
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The Wisconsin Supreme Court, backed by Republican lawmakers, overturned the governor's stay-at-home order. Photo by Kamil Krzaczynski/UPI | License Photo
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Owner Robert Zanti takes a break from getting his restaurant ready for reopening after being closed for nearly two months in St. Louis on May 13. Photo by Bill Greenblatt/UPI | License Photo
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A man walks into a bakery in Edwardsville, Ill., on May 13. Madison County board members have agreed to reopen the county, officially going against Illinois Gov. J.B. Pritzker's statewide stay-home order. Photo by Bill Greenblatt/UPI | License Photo
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Cook Joe Eisenbraun prepares to wrap a "Heart Attack" sandwich at Crown Candy in St. Louis on May 12. Crown Candy is serving only at curbside until the stay-at-home orders are lifted in Missouri later in the month. Photo by Bill Greenblatt/UPI | License Photo
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Owner Andy Karandzieff pours a milkshake at Crown Candy. The popular restaurant has reopened after four weeks. Photo by Bill Greenblatt/UPI | License Photo
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A mother and child wear protective masks as they walk down a street in Paris on May 12. Photo by Eco Clement/UPI | License Photo
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France 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 Photo
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British 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 Photo
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Shoppers wear masks in the Mahane Yehuda Market in Jerusalem on May 7. Photo by Debbie Hill/UPI | License Photo
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A security guard checks the temperature of a woman before granting her entrance to the Rami Levy Atarot Mall near Jerusalem. The Atarot Mall is the first Israeli-Palestinian Mall. Photo by Debbie Hill/UPI | License Photo
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Israel opened malls and outdoor markets after more than 40 days of closure due to the coronavirus pandemic restrictions. Photo by Debbie Hill/UPI | License Photo
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Customers have their hair washed at JF Hair Co. in Union, Mo., on May 6. Photo by Bill Greenblatt/UPI | License Photo
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Stylist Chrissy Whitley trims the hair of customer Mark Nolting at JF Hair Co. The salon reopened on May 4 after being closed since March 23. Photo by Bill Greenblatt/UPI | License Photo
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People visit the beach after the the city relaxed restrictions in Isle of Palms, S.C, on May 6. Photo by Richard Ellis/UPI | License Photo
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The beach reopened for the first time since March. Photo by Richard Ellis/UPI | License Photo
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Nicholas Calio, president and CEO of Airlines for America, uses disinfecting wipes before testifying before a hearing on the pandemic's impact on the aviation industry May 6 on Capitol Hill in Washington, D.C. Photo by Jim Watson/UPI | License Photo
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Workers wipe down chairs between Senate committee hearings in the Dirksen Senate Office Building on Capitol Hill. Photo by Jonathan Ernst/UPI | License Photo
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Senate Minority Leader Charles Schumer, D-N.Y., talks to reporters at a distance after the Senate reconvened following an extended recess due to the pandemic on Capitol Hill in Washington, D.C. on May 4. Photo by Kevin Dietsch/UPI | License Photo
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Senate Majority Leader Mitch McConnell, R-Ky., walks to the Senate chambers. Photo by Kevin Dietsch/UPI | License Photo
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Sen. John Cornyn, R-Texas, talks to reporters as the Senate reconvened. Photo by Kevin Dietsch/UPI | License Photo
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Peter Wolff, owner of the The Gift Nook store, looks down Main Street for customers in St. Charles, Mo., on May 4. Photo by Bill Greenblatt/UPI | License Photo
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People enjoy ice cream at Kilwins as others walk on the sidewalk in St. Charles. 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 Photo
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Jeweler Tom Wapelhorst arranges a display in his front window at Walters Jeweler in St. Charles. Photo by Bill Greenblatt/UPI | License Photo
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Don (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 Photo
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Customers have lunch inside El Toro Mexican restaurant in Clute, Texas on May 3. Photo by Trask Smith/UPI | License Photo
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Restaurants 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 Photo
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A customer looks at merchandise inside the Boot Barn clothing store in Lake Jackson, Texas on May 3. Photo by Trask Smith/UPI | License Photo
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Shoppers return to Northpark Mall in Dallas on May 1. Elbow bumps have become the new handshake. Photo by Ian Halperin/UPI | License Photo
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Workers open their store in Firewheel Town Center in Garland, Texas on May 1. Photo by Ian Halperin/UPI | License Photo
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Missed delivery tags hang on a storefront in Firewheel Town Center. While stores and restaurants may reopen under strict health and social distancing guidelines in Texas, many have chosen not to. Photo by Ian Halperin/UPI | License Photo
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A hairstylist and his client wear protective face masks and gloves at a salon in Jerusalem on May 1. Israel has eased some coronavirus restrictions, allowing small stores and beauty salons to open, while maintaining the strict social distancing rules. Photo by Debbie Hill/UPI | License Photo
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Pedestrians wear mandatory face masks and gloves while shopping in Jerusalem. Photo by Debbie Hill/UPI | License Photo
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Pedestrians 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 Photo
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Florida 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 Photo
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A couple from Central Florida stroll along the surf near Cocoa Beach. Photo by Joe Marino/UPI | License Photo
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A child wades in the ocean at Cocoa Beach. Photo by Joe Marino/UPI | License Photo
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Pedestrians walk closely together in Beijing on April 19. Photo by Stephen Shaver/UPI | License Photo
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Newlyweds 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. Photo by Stephen Shaver/UPI | License Photo
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A couple continues wearing protective face masks next to a police checkpoint in Beijing on April 15. Photo by Stephen Shaver/UPI | License Photo
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A board on the the floor of the New York Stock Exchange on March 18 shows declining oil prices as a result of the coronavirus pandemic's impact on world energy markets. File Photo by John Angelillo/UPI | License Photo

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."

World moves to reopen amid COVID-19 pandemic