The Global Risks report is published yearly ahead of the World Economic Forum Annual Meeting in Davos-Klosters, Switzerland, and is produced in partnership with Citigroup, Marsh & McLennan Companies (MMC), Swiss Re, the Wharton School Risk Center and Zurich Financial Services.

While fears for the state of the global economy and the fallout should Chinese economic growth fall below 6% year on year were cited as significant worries the slump in the levels of investment in energy projects was flagged as a serious concern for the short and medium term.

The energy investment crisis was seen as one of a number of creeping risks which while having not appeared overnight, have seen the recession limiting the ability of decision-makers to combat them effectively.

At the launch of the report in London John Drzik, CEO of Oliver Wyman, an MMC operating company, said, “The recent drop in oil prices has been good for consumers, but has also contributed to a significant cut in much-needed investment in energy infrastructure and renewable energy projects. This comes at a time when governments – as well as business and consumers – are looking for long-term security of an energy supply that is both sustainably-sourced and reasonably priced. The fragile global economy will make itself more susceptible to oil price-related shocks if this underinvestment continues.”

He added that the figures were start with energy  investment having fallen by 19% in terms of new oil and gas projects and 20% in renewable energy projects, a figure which would have fallen to 30% had it not been for governmental incentives to encourage investment for the future.

Mr Drzik warned the global oil price rises were at the heart of many of the risk which are faced by the global economies.

Robert Greenhill, Managing Director and Chief Business Officer at the World Economic Forum, said Global Risks 2010 underlined the challenges ahead: “The findings of the report confirm that we must face up to the challenges created by these unprecedented levels of interconnectedness between risks. The financial crisis and the ensuing recession have created a more vulnerable environment where unaddressed risks may become tomorrow’s crises.”