Investment in the energy sector worldwide dropped for the second year straight as spending on upstream oil and gas projects continued to wane, according to the International Energy Agency (IEA).
In its World Energy Investment report for 2017, the Paris-based IEA said worldwide energy spending fell by 12 percent in 2016 to $1.7 trillion, representing 2.2 percent of global gross domestic product.
Even then, IEA executive director Fatih Birol said in a statement that investment in energy efficiency was rising due to strong government policies in key markets.
Birol said this was good news that was happening in spite of low energy prices and considering the need for governments to ensure that supplies were sufficient in the long term.
“Our analysis shows that smart investment decisions are more critical than ever for maintaining energy security and meeting environmental goals,” Birol said.—RONNEL W. DOMINGO