SEATTLE (Oil Monster): The new report published by the International Energy Agency (IEA) highlighted the need for increased investments in the oil and gas sector to sustain current production levels. It said that output has been declining more rapidly than before. The findings of the report are based on a study of around 15,000 oil and gas fields.
According to IEA, the average rate of decline of oil and gas production has accelerated sharply during recent times. This decline has forced companies to invest more in order to sustain production at required levels.
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The oil and gas industry must need to look into developing new resources to keep oil and gas production constant over time, said Faith Birol, Chief Executive Officer at the Agency. A large gap needs to be filled by new conventional oil and gas projects. Birol expects upstream oil and gas investments during the current year at around $570 billion, which in turn may result in a slightly higher production.
To maintain production at current levels, more than 45 million barrels per day (mmbl/d) of oil must be produced, along with about 200 billion cubic meters (bcm) of natural gas from new fields by 2050, noted IEA report. The industry often overlooks conversations about oil and gas investment, it said.
