Without continued investment, the world could lose an amount of oil from the global oil balance equal to the combined production of Brazil and Norway, APA-Economics" reports, citing International Energy Agency (IEA).
According to the report, the average rate of decline in oil and gas field production over time has increased significantly globally, mainly due to the increasing dependence on shale and deepwater resources. This means that companies must work harder than ever to maintain production at today's levels.
According to the agency's executive director, Fatih Birol, only a small part of investments in the upstream oil and gas sector are used to meet demand growth, with about 90% of investments each year being directed at compensating for supply losses in existing fields.
"The rate of decline is a key issue that is not taken into account in investment discussions, and our new analysis shows that this rate has increased in recent years. When it comes to oil, the lack of investment in upstream would remove an amount of oil equivalent to the combined production of Brazil and Norway from the market each year. This situation could have serious consequences in terms of market balances, energy security and emissions," Fatih Birol stressed.
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