Offshore energy investment needs could reach $5.9 trillion by 2040

The International Energy Agency (IEA) released its latest offshore energy outlook on Friday morning, outlining the agency's current estimates
of offshore energy production for oil, gas and wind power.

Over the past decade, offshore oil production has been stable at about 26 million to 27 million barrels per day, while natural gas production has increased by 30 percent over the same period to more than 1 trillion cubic meters
per day.
This means that the share of offshore oil in the growing oil market is declining
.

This is partly due to a lack of investment in expensive offshore projects following the collapse in crude oil prices in 2014, and partly due to a rapid increase in onshore production, particularly shale gas production
in the United States.

In its report, the IEA forecasts
energy production under two scenarios.
The first is a new policy scenario that combines
existing energy policies with the implementation of published policy intentions.
Another sustainable development scenario, which provides an integrated approach
to achieving international climate change goals, air quality standards and universal access to "modern energy".

In 2016, offshore oil production reached 26.
4 million barrels per day, and natural gas production reached 17.
5 million barrels
per day of oil equivalent.
Under the new policy scenario, oil production increases to 27.
4 million barrels in 2040, while natural gas production increases to 29.
6 million barrels
.
Under the sustainability scenario, oil production declines to 18.
7 million barrels and natural gas production increases to 23.
5 million barrels
.

Offshore wind generated approximately 45 terawatt hours (TWh)
in 2016.
Under the new policy scenario in 2040, wind power generation increases to 58.
3 billion kWh, while under the sustainable development scenario, wind power generation reaches 121.
7 billion kWh
.
Other technologies, such as wave power, add 53 TWh under the new policy scenario and 85 TWh
under the sustainability plan.

The total capital investment required to meet the new policy scenario projections is $5.
9 trillion, while the sustainable development scenario projections require $4.
6 trillion in capital expenditure
.
In the former, investment in the development of new oil resources accounts for more than half of spending, while after 2040, oil, gas and electricity will be allocated about one-third
each.