Dow Jones, July 13, 2020-Russian Energy Minister Alexander Novak said at a web conference on Thursday that global oil investment will be reduced by one-third this year due to the current economy and oil demand.
Novak pointed out that when the situation was most serious in April, global demand fell sharply by 25%-28%, that is, a daily reduction of 28 million barrels, and pointed out that the OPEC + production cut agreement will help the market rebalance. The Russian minister said that this balance, or even a loss, may be reached this month.
Novak's views on market rebalancing and oil industry investment are consistent with the assessment of analysts and international organizations.
The International Energy Agency (IEA) stated in the "World Energy Investment Report 2020" released in May this year that the current situation will lead to a record annual decline in energy investment-nearly $400 billion. The agency estimates that investment in the oil and gas industry will be the biggest decline this year. Oil and gas investment in 2020 will be reduced by USD 244.1 billion from 2019, a decrease of nearly one-third.