Fossil Fuel Investment Has Dropped By A Third Since 2015

By Paul Homewood


There was one chart I forgot to show from the IEA’s World Energy Outlook yesterday:



As we can see, investment in fossil fuels has fallen by a third since 2015 in terms of GDP. Part of this was due to the collapse in oil and gas prices in 2014, but undoubtedly the anti-fossil fuel agenda pursued across the West for climate reasons has had a major impact as well.

Either way, this is the real reason why prices have rocketed, not the invasion of Ukraine.

Further evidence can be found in Fig 1.3, which shows that investment has remained steady in countries without a Net Zero pledge:


The real concern is that we are only seeing the early signs of much worse to come. When the cuts in fossil fuel investment really start to bite and existing oil fields begin to dry up, there will be a catastrophic energy crisis. Shortages will be very real and prices will rise well above today’s levels, as demand stays high and we find that renewable energy simply cannot keep up with demand.

The IEA’s naively oversimplistic projections simply assume that building wind and solar farms will do the trick. But the world is a complex place and does not work like that.

The Russian invasion of Ukraine has given us a warning. We had better not ignore it.


October 30, 2022 at 08:38AM

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s