IEA Says Oil and Gas Industry Needs $8.2 Trillion in Investment

The International Energy Agency estimates oil companies will need to invest $8.2 trillion dollars over the next 25 years to increase production capacity enough to meet demand. In a recent article on reasononline, science correspondent Ronald Bailey asks the multi-billion dollar question: Is that level of investment happening? In his insightful article, Bailey outlines the main obstacle to additional investment in the oil and gas sector: state-owned oil companies. He concludes that the “sad fact is that the world’s energy security would be a lot greater if more of the world’s oil and gas resources were in the hands of private companies.” Although that may be true, it is certainly not the case. About 77% percent of the worlds known oil and gas reserves are controlled by state monopolies that severely limit or completely bar outside investment. Bailey points out two major reasons for concern. In some regions, like Venezuela and Russia, foreign investors are being forced…Read More.

Published in: on August 12, 2009 at 3:52 pm  Leave a Comment  
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