IEA forecasts dramatic cut in energy investments in 2009
Azerbaijan, Baku, Jul.15 / Trend A.Badalova /
In 2009, the International Energy Agency (IEA) forecasts dramatic cut in energy investments in many regions.
Energy companies reduced drilling oil and gas wells and cut expense on construction of oil-refining plants, pipelines and hydroelectric power plant in 2009, the IEA reported.
Many projects were slowed, while others were postponed or canceled owing to absence of finances and reappraisal of their profitability. Projects are regularly delayed, particularly, in oil and gas industry. due to low oil prices, the IEA said.
Under the IEA estimates, world investments in oil and gas sector reduced by 21 percent - roughly $100 million in 2009 compared to 2008.
According to the IEA forecast, investment will be reduced in non-OPEC countries in 2009.
Investments in recoverable energy resources will reduce by 38 percent in 2009. However, stimulating measures by governments is likely to compensate this reduction, the same source said.
There is a great danger that permanent cut in investments in deliveries for some months even for years is likely to cause deficit in capacities and next increase of energy prices. The more quickly the economy will recover, the more probability of such scenario to appear, the IEA said.
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