Analyst Sees Oil and Gas Running Short of Cash as IEA Releases Energy Investment Update

Posted to The Energy Mix in the The Energy Collective Group
image credit: /Piqusels
Mitchell Beer's picture
Publisher and Managing Editor, Energy Mix Productions Inc.

I’m publisher of The Energy Mix, an e-digest and online archive on energy, climate, and the shift to a post-carbon economy. Also president of Smarter Shift, an Ottawa-based firm that specializes...

  • Member since 2018
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  • May 31, 2023

Despite continuing growth in fossil fuel spending and record investment in coal, clean energy sources are becoming ever more dominant in a world that is expected to spend US$2.8 trillion on all forms of energy this year, the International Energy Agency (IEA) reported last week.

The shift in financing still isn’t fast enough or deep enough to hit a net-zero emissions target by mid-century, the agency warns. But days after the IEA released its World Energy Investment 2023 report, a U.S. bank analyst was asking a question that would previously have been unthinkable: whether privately-owned oil and gas companies will run short of investment dollars to develop new extraction projects.

“Yes, there is a danger, or a risk at least, of a severely diminished ability to privately finance oil and gas projects,” Ed Morse, global head of commodities research at New York-based Citibank, told fossil newsletter Rigzone.

Morse’s assessment was more dire for the industry, more hopeful for a decarbonized future, than the IEA’s. But the Paris-based agency’s report, the latest in an annual series, shows clean energy spending outstripping fossil fuels for the fourth year in a row and growing 24% over the last two years, compared to 15% for oil, gas, and coal, with solar expected to surpass oil production investment for the first time.

Read more about the IEA's take on clean energy investment "pulling away" from fossil fuels...and the indications that the fossil industry is quietly getting the memo, even if they can't say it out loud.

Jim Stack's picture
Jim Stack on Jun 2, 2023

After over 100 years of highly pollution coal and gas investments i sure hope renewable investments are the highest. Solar and Wind has show  they are the fastest to drploy and lowest cost. Coal and gas hsve shown to ruse in cost and are more expensive to use. Even as we have ignore the codt of the pollution coal and gas are very poor long term. 

   Just imagine if we had been pouring Billions into Renewables for 100 years? 

Mitchell Beer's picture
Thank Mitchell for the Post!
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