Nicholas Newman Eniday April 2016
Trillions of dollars are being invested in energy projects around the world. Construction of new power stations, coal mines, pipelines and grids, as well as the exploration and development of new oil and gas fields, accounts for much of the investment. According to the International Energy Agency [IEA], $1.8 trillion was invested worldwide in the energy sector in 2015, a little down from the previous year’s figure of $2 trillion, owing to weak oil and gas prices and related industry cost-cutting and efficiency drives.
The upstream oil and gas sector attracted the largest investment at $583 billion, followed by electricity generation at $420 billion and electricity transmission at $262 billion, with a significant $313 billion invested in all renewable sources. China is currently the world’s leading energy investor at $315 billion, followed by the United States at $289 billion while lagging well behind the U.S. with less than half the investment is the European Union at $140 billion. Individual energy projects can prove costly: It will cost $174 billion, over 20 years, to develop Libra, Brazil’s largest offshore oil field, while South Africa’s over-budget and over-schedule 4,764 MW-coal power station Medupi has an estimated final cost of $3.05 billion. In addition, $3.76 billion was required for the development of the 870-MW London Array Offshore Wind Farm located near London. Read More