My finance view

OTTAWA–The International Energy Agency is warning that the oil companies are sowing the seeds of a new supply crisis and a return to sky-high prices.

The agency says oil producers are delaying expensive projects that would bring in much need supply, including some in Canada’s oil sands.

I.E.A chief economist Fatih Birol says he is worried that when demand rebounds, there may be another supply crunch like the one that occurred last summer.

The Paris-based agency, which advises rich countries on energry policies, says in a report released Wednesday it the world’s energy system is on an unsustainable path short-term cash loans.

It warns the result could be both oil shortages and “catastrophic and irreversible" climate damage.

The agency predicts oil demand will climb to 106 million barrels a day from the current 85 million.

It says to meet rising energy demand over the next two decades, the industry would have to invest a minimum of $26 trillion.

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