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1872-Cover

Reports

July 2017

Impact of Low Oil Price on Energy Security

Published Under

SOM Steering Committee on Economic and Technical Cooperation (SCE), Energy Working Group (EWG)

Accessed

1902

Pages

92

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.