ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) on Sunday said that low oil prices are pushing world into a new crisis of energy insecurity which must be tackled.

President ICCI Atif Ikram Sheikh said world is increasingly relying on cheap oil and gas from the middle east which is putting strain on reserves while leaving energy industries in the west bankrupt.

Banks are starting to pull back from lending to energy companies due to increasing defaults as global investments in the oil and gas sector have plunged by 20 percent and there is no chance of increased investments in the next year which is worrying, said a press release issued he on Sunday.

The ICCI president maintained that majority of the oil producing countries have seen wide budget deficits which has slowed growth and reduced demand that has also hit exports of many countries including Pakistan.

Middle East is bracing to regain lost ground to cover 66 percent of the global demand after 1970 but lack of investment can result in a global crisis with Asia worst hit, he warned.

According to projections, China would be consuming five times fuel that US consumes by 2040 while half of the electricity in EU will be produced by renewables, he informed.

Sheikh said that by 2040 China and Japan would be producing 30 percent electricity through renewables while that ration in the US and India will stand at 25 percent which will reduce oil demand.