Electricity Investments Surpass Oil, Gas for Second Year Running - IEA
LONDON, July 17 (Reuters) - Global electricity investments exceeded those in oil and gas for the second year running in 2017 due to more spending on grids but renewable energy investment fell after years of growth, the International Energy Agency said on Tuesday.
Global energy investment totalled $1.8 trillion last year, down 2 percent from 2016. More than $750 billion was spent on the electricity sector, while $716 billion was invested in oil and gas supply.
Spending on the power sector was driven by grid investments as it moves towards more electrification, the IEA's annual World Energy Investment report said.
Many countries are having to invest more in upgrading or building new power networks to balance out demand and supply swings due to the rise of solar and wind power and electric vehicles.
Despite rising renewable energy production, investment in energy efficiency and renewables went down by 3 percent last year after several years of growth and could decline further this year, the IEA said.
China has decided to cut subsidies for new solar plants and restrict the number of new projects which raises the risk of a slowdown in investment this year.
"Such a decline in global investment for renewables and energy efficiency combined is worrying," said Fatih Birol, the IEA's executive director.
"This could threaten the expansion of clean energy needed to meet energy security, climate and clean air goals. While we would need this investment to go up rapidly, it is disappointing to find that it might be falling this year," he added.
At the same time, investment in fossil fuels increased last year for the first time since 2014 as the spending power of the oil and gas industry increased.
The share of national oil companies in total oil and gas upstream investment remained near record highs, a trend expected to continue this year, the IEA said.
The United States' shale industry is also at a turning point after a long period of operating in a weak financial environment.
"The industry appears on track to achieve positive free cash flow for the first time ever this year, turning into a more mature and financially solid industry while production is growing at its fastest pace ever," Birol said.
The report also said that investment in the nuclear sector sank to its lowest level in five years last year as more plants were retired than newly built.
Final investment decisions for new coal-fired plants declined for a second year running, but the global coal fleet continued to expand in 2017, mostly due to markets in Asia.
(Reporting by Nina Chestney; Editing by Adrian Croft)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea