PARIS: The energy industry is set to suffer a record drop in investment due to the coronavirus fallout, the IEA said on Wednesday, and while renewables are likely to fare better than oil, any swift economic recovery could create a global fuel crunch.

In its annual report on energy investments, the Paris-based International Energy Agency (IEA) estimated the plunge will be of the order of one-fifth from 2019 levels, or almost $400 billion, as firms slash spending amid slumping demand for energy.

Shale oil producers that catapulted the United States to the world`s top crude nation stand to suffer the worst decline, the IEA said.

`All the energy sectors oil, gas, renewables everything is affected but the biggest impact is on shale oil,` the agency`s director Fatih Birol told AFP in an interview.

`Total oil investments we expect to decline one third this year whereas the shale industry will see a decline of about 50 per cent.`-AFP