Data: IEA; Chart: Sara Wise/Axios
A few days ago the International Energy Agency updated its analysis of the pandemic-fueled decline in investment.
Driving the news: IEA now sees global industry investment on the upstream (exploration and production) side falling by 35% this year, a slightly steeper drop than their prior analysis in May.
Why it matters: "This somewhat weaker outlook stems from cuts of around 45% by shale companies in the United States, which have experienced a surge of bankruptcies, layoffs and shut-ins, as well as a 50% jump in financing costs," IEA notes.
The big picture: Investment is falling across the energy industry, but some sectors are faring much better than others.
- "Annual spending for renewable power is now seen down by only 3% compared to the prior year, supported by continued development of large projects with long lead times, such as offshore wind ... and hydropower," IEA said.
