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:

 

 image

https://www.iea.org/reports/world-energy-outlook-2022

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:

image

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.

via NOT A LOT OF PEOPLE KNOW THAT

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October 30, 2022 at 08:38AM

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