International Energy Agency warns of low oil price danger

Governments should not count on oil prices remaining low when deciding their energy policies the head of the International Energy Agency (IEA) has warned

Energy companies have scaled back investments as oil prices have fallen, which will have serious implications for future projects, Fatih Birol told delegates at Singapore International Energy Week. Investments in oil projects have dropped more than 20% in 2015. The bulk of spending cuts affect projects in Brazil and North America. Worryingly, the IEA estimates that investments could fall further in 2016. “If true, it will be the first time in two decades that we see investment declining in two consecutive years and there could be grave implications for future oil markets”, said Birol. "One should think about the medium and long-term implications of this lack of investments." “Our message is