IEA: Oil recovery lulls producer nations into economic stupor
Hydrocarbons-dependent nations need to diversify their economies fast to make up for future revenue shortfalls
The return of oil prices to levels more redolent of the pre-2014 era has given the world's leading oil producing nations some economic respite. But new industry analysis warns they are inviting economic disaster by relying on hydrocarbons income in a future of uncertain energy demand. The International Energy Agency (IEA) released a report this week that finds some of the biggest producers will need to diversify in preparation for a slowdown in oil demand growth in the 2020s. It focuses on the likely impact of changing oil demand in the period to 2040 on six major producers—Iraq, Nigeria, Russia, Saudi Arabia, the United Arab Emirates and Venezuela. These countries will face rising competiti
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
