Photo: Tatyana Makeyeva / Reuters
Europe could face oil shortage in the next decade, writes The Guardian, citing a study of the analytical center Shift Project.
It said that oil production will decline faster than the EU will be able to overcome the dependence on fossil fuels. This increases the risk of crisis and faces a shock rise in prices. Experts characterize the condition of the mining industry in Russia and the former republics of the Soviet Union the expression “systematic decline”. They provide more than 40 percent of supply of raw materials in the EU.
It is expected that oil production in Africa will decline sharply over the next decade. The effects of the pandemic coronavirus could aggravate the situation in the market and impede investment in new oil projects. It is expected that large companies will reduce their spending for the coming year almost a quarter ($40 billion).
Analysts predict that the rapid transition to alternative energy will not only play a crucial role in the fight against climate change, but also help to avoid the slowdown in emerging markets.
Earlier, Deputy Minister of energy of Russia Pavel Sorokin said that the Agency considers fair the price of oil in the range from 40 to 50 dollars per barrel. As expected in the IHS, Markit, demand for raw materials may return to the level that was before the pandemic, during the second half of 2021.
Video, photo All from Russia.