The energy crisis has jeopardized the rapid recovery of the global economy. It may slow down due to high prices for fossil fuels, reports Reuters with reference to the report of the International Energy Agency (IEA). In addition, power outages due to the high cost of energy and its shortage will also reduce production activity.
“Record coal and gas prices and power outages are forcing the energy sector and energy-intensive industries to turn to oil to generate electricity and keep them running,” the IEA explained, citing rising fossil fuel prices and power outages as the cause of the production slump.
It is expected that global oil demand in 2022 will increase from 170 thousand barrels per day to 210 thousand barrels, which is in line with indicators before the coronavirus pandemic. At the same time, according to the IEA, OPEC + in the fourth quarter of 2021 will produce 700 thousand barrels less than necessary, and the demand for oil will outstrip supply, at least until the end of 2021.
To combat the energy crisis, the IEA calls for increased investment in green energy. “The sharp increase in the cost of switching to clean energy opens the way forward, but this must happen quickly, otherwise the global energy markets will step on a thorny path,” – the authors of the report warned.
Ahead of the UN climate summit, which is expected to see member countries make new, more ambitious commitments to carbon neutrality by 2050, the IEA called for a triple increase in renewable energy investments and spending on saving the planet by 2050. The agency stressed that the world is currently not investing enough money to meet its energy needs in the future.