Strong policy push needed to reduce oil and gas demand

Mismatch between tightening supply and continued demand will result in continued volatility unless action taken on demand side, says IEA report

Current oil and gas investment is in line with the IEA’s Net-Zero Emissions (NZE) scenario, but stated policies will not be enough to reduce demand and prevent further energy market volatility, the agency warns in its most recent World Energy Outlook. Oil and gas investment is estimated to fall from $481bn in 2019 to c.$356bn by the end of this year—below the NZE threshold of an average $366bn per year up to 2030. Clean energy investment, on the other hand, is only a third of the level needed to meet net zero by 2050. “As the world makes its much-needed way towards net-zero emissions, there is an ever-present risk of mismatches between energy supply and demand as a result of a lack of approp