Petro-States Have Got a Problem With Their Economies - Bloomberg

Petro-States Have Got a Problem With Their Economies - Bloomberg:

Countries heavily reliant on oil and gas for revenue must diversify their economies or face worsening finances, the International Energy Agency warns in a new report.

While revenue for petro-states has always fluctuated in boom-and-bust price cycles, this time is different. Surging U.S. shale production, the expansion of renewables and increases in energy efficiency pose a more fundamental challenge.

“Now, more than at any other point in recent history, fundamental changes to the development model look unavoidable,” IEA Executive Director Fatih Birol said in an interview. “Countries cannot afford to base their economies on oil and gas revenue only. It’s high time to diversify their economies.”