Tanaka gears up for ‘double challenge’

The double challenge of cheaper oil and a global recession is to ensure enough is spent on new sources of fossil fuel and to grab the opportunity to get greener supplies, Nobuo Tanaka, the head of the International Energy Agency (IEA) said today.

Oil at near $40 a barrel has slowed investment in oil projects, he told Reuters, raising the possibility of a supply shortfall once demand resumes.


“The current price level has a negative impact on investment in new oilfields,” Tanaka said on the sidelines of the World Economic Forum in Davos.

“We are concerned about slowdown, slippage, cancellation of projects. When demand comes back, we may have a supply crunch,” He added.

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