Oil-dependent developing nations face huge shortfall

The energy transition means that countries such as Nigeria and Ecuador will suffer falling revenue and need to start preparing a strategy

Government oil and gas revenues worldwide could be $13tn less over the next two decades, compared with a business-as-usual scenario of continued growth demand and firm long-term prices, according to a report by thinktank the Carbon Tracker Initiative. Under the IEA sustainable development scenario, which sees a 50pc chance of temperature rises being limited to 1.65°C this century, government revenues from oil and gas sales will be approximately half those under the IEA’s ‘stated policies’ scenario, which reflects governments’ announced policy intentions. Countries that wait until the oil price decline starts to happen will have left it too late to address the problem, according to Mike Coffi