A prolonged period of lower oil prices has confirmed that the current state of the commodity on the markets has taken its toll on investment and energy-efficiency in the Middle East.
Brent crude oil
Following up on the World Energy Outlook 2015, the International Energy Agency (IEA) has updated its analysis, with the latest data from the IEA showing that investments in the oil sector declined both last year and into this year. This is the first two-year drop in 30 years, the Agency stated.
The Middle East's energy industry slashed its spending by $300 billion (£227 billion) in two years - a 42 per cent cut. This downturn was unprecedented, with North America accounting for around half of the decline. If prices remain at current levels, it is unlikely there will be a rebound in 2017, the IEA said.
The Middle East's oil production levels are at an historic high of 31 million barrels per day. The region accounts for more than one-third of the world's oil supplies and includes the growing oil production markets of Saudi Arabia, Iraq and Iran.
Low oil and gasoline prices are negatively affecting energy efficiency trends in some parts of the Middle East, particularly in transportation. In the US, so-called gas-guzzling SUVs experienced 2.5 times the demand in 2015 than in 2014, while in China, sales of SUVs grew at an even greater rate.