Oil nations face $9 tn shortfall as demand falters: analysis

Oil and gas producing nations face up to nine trillion dollars in lost income as the world accelerates the transition to renewable energy, saddling poorer but resource-rich nations with higher risk of stranded assets, an analysis showed Thursday.

Over 400 million people live in the worst affected countries, where declining fossil fuel revenues could see government income fall by at least 20%, leading to cuts in public services and greater unemployment, according to an assessment by the Carbon Tracker industry watchdog.

Half of those set to be impacted live in Nigeria, where a 70% drop in oil revenues would cut state income by one third, it found.

As renewable energy such as wind and solar becomes cheaper than fossil fuels, oil producing nations collectively risk a $13 trillion loss by 2040, compared with industry expectations.