IEA expects rising investments in low-emission energies, decline in Oil investments - Commerzbank

The International Energy Agency published a report on investments in the energy sector yesterday, Commerzbank's commodity analyst Carsten Fritsch notes.

US shale Oil production is likely to peak soon

"These are expected to reach a record level of $3.3 trillion in the current year and show a clear shift towards investments in 'green' energies. Two thirds of investments will be made in low-emission technologies such as renewables, nuclear energy, grids, storage, low-emission fuels, efficiency and electrification."

"Investments in Oil, gas and coal are expected to account for $1.1 trillion. Investments in the generation, transmission and storage of electricity are expected to exceed investments in fossil fuels by 50%. Upstream Oil investments are expected to fall by 6% year-on-year for the first time since the coronavirus-induced slump in 2020."

"The main reason for this is the US shale Oil sector. In recent weeks, some US shale Oil companies have already reported cuts to their investment plans. This reinforces the picture that US shale Oil production is likely to peak soon."