IEA says Middle East conflict will reshape global energy investment
The ongoing conflict in the Middle East has kicked off what the International Energy Agency (IEA) calls the "largest energy security crisis the world has ever faced."
With oil and gas supplies disrupted, countries are scrambling to find new trade routes and ramp up local production.
According to IEA executive director Fatih Birol, this shake-up is set to "reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s."
Global energy investment to reach $3.4tn
Global energy investment is expected to reach $3.4 trillion by 2026, with most of it, about $2.2 trillion, going into power grids, energy storage, low-emission fuels, renewables, nuclear power, electrification, and efficiency measures.
Oil investment keeps dropping below $500 billion due to uncertainty and delays, while spending on natural gas is rising thanks to major US and Qatar projects.
Plus, more than $650 billion will be invested in power grids and battery storage as countries try to protect themselves from future disruptions.