Impact of Low Oil Price on Energy Security

This study analyses various outcomes of impact of low oil price. Oil-consuming economies would gain benefits from low oil price. However, low oil price would deliver a major blow to oil-producing economies and oil major companies. To cope with the impact, oil-producing economies must secure revenues by drawing down assets of their sovereign wealth funds (SWFs) and other means. Long-running low oil price would bring disincentives for oil-producing economies to continue to invest oil upstream sector, which would result in decrease in crude oil production in the future.