Oil and gas prices are more likely to stay inflated for years given the uneven transition to cleaner energy sources, the pinnacle of the International Energy Agency stated Wednesday.
The push to finish dependence on Russian oil and gas, coupled with efforts to battle local weather change, has bumped up the tempo of investments in inexperienced know-how. But the will increase “are not enough to replace fossil fuels,” stated Fatih Birol, the company’s government director, which “may mean we will still see high and volatile energy prices for some time to come.”
In Africa, hovering energy and meals prices final yr brought on the variety of individuals with out entry to electrical energy to develop by 25 million, or 4 %, Mr. Birol stated, reversing a decade of progress. The probability that European governments must introduce some energy rationing this winter can be growing, he stated.
Worries about shortages and excessive prices have triggered extra spending on fossil fuels, notably coal, one of many dirtiest energy sources, the company reported in its annual report on world energy investment. Emerging economies have fallen the furthest behind, with just about zero improve in clear energy investment since 2015, the report stated.
The painful rise in gas prices has generated extraordinary windfall earnings for oil and gas producers: The sector’s earnings is anticipated to succeed in $4 trillion this yr, greater than double its five-year common.
Mr. Birol known as on the most important oil and gas producers to make use of the “once-in-a-generation opportunity” to take a position the outsize earnings in rushing the transition to scrub energy sources. At current, such investments account for a mere 5 % of oil and gas firms’ capital investments.