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The world\u2019s oil and gasfields are declining at a faster rate than previously thought, leaving the energy sector facing a costly battle to maintain output, the International Energy Agency said on Tuesday.\u00a0<\/p>\n
The IEA, an intergovernmental body dedicated to energy research and security, said it had analysed data from 15,000 oil and gasfields and concluded that production is growing more precarious because of an increasing reliance on shale oil and gas, where fields need continuous new drilling to maintain their output.\u00a0<\/p>\n
Fatih Birol<\/a>, head of the IEA, said that since 2019 the oil industry has spent \u201cnearly 90 per cent of annual investment\u201d on oil and gas production, or around $500bn a year, simply to arrest the decline in existing fields. <\/p>\n \u201cThe situation means that the industry has to run much faster just to stand still,\u201d he added.\u00a0<\/p>\n The IEA\u2019s findings are likely to be greeted enthusiastically by the oil industry<\/a>, which has consistently maintained that it needs to spend heavily to maintain its current production levels. <\/p>\n The report also represents a shift in position from the organisation, which warned last year that the industry faced a \u201cstaggering glut\u201d of oil<\/a>, and that many producers should \u201clook at their business plans\u201d.\u00a0<\/p>\n