Oil Security Seen at Risk by IEA on `Historic' Spending Cuts
- More than $100 billion of investments canceled on price slump
- Doha meeting won't affect crude supplies: IEA's Atkinson
Oil Hits $40 Again: Is It Time for a Pullback?
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An oil shock may be lurking around the corner as the price bust has hammered investment in future supply, according to the International Energy Agency.
“Historic” investment cuts taking place now increase the possibility of oil-security surprises in the “not-too-distant” future, Neil Atkinson, head of the IEA’s Oil Industry and Markets Division, said in Singapore on Wednesday. About $300 billion is needed to sustain the current level of production, and nations including the U.S., Canada, Brazil, and Mexico are facing difficulty in keeping up investments, he said.