If the International Energy Agency is correct, this current oil bust will be responsible for creating the longest period of declining investment in the energy industry in half a century.
Oil and gas investment dropped by 25 percent last year to just $583 billion, according to the report from Fatih Birol, the executive director of the IEA.
“We see a broad shift of spending toward cleaner energy, often as a result of government policies,” he said in a released statement. “While some progress has been achieved, investors need clarity and certainty from policy makers. Governments must not only maintain but heighten their commitment to achieve energy security and climate goals.”
Investments are expected to continue declining through the rest of the year, perhaps falling by another 24 percent to $450 billion. Oil and gas investments were far beyond $750 billion two years ago.
The largest source of power investment was in renewables. The IEA said the investment in new renewable electricity capacity was more than enough to cover the growth in demand.