IEA Foresees Dip in Upstream Oil Investment in 2025

SEATTLE (Oil Monster): Global energy investment is predicted to reach a new high in 2025, per the International Energy Agency's (IEA) most recent World Energy Investment report. However, the agency predicts a decline in fossil fuel spending, with investments in the oil sector being hurt by the decline in crude prices.

According to the IEA, upstream oil investment is expected to reach $535 billion in 2025, a 6% decrease from the previous year. Since 2020, this is the first year-over-year decrease. It is anticipated that shale investment will decline by nearly 10% over the course of the year. It is anticipated that the investment in natural gas and oil will drop to $570 billion annually.

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The agency had previously forecast that upstream spending on gas and oil would remain unchanged in 2025. However, it was compelled to update the forecast due to the declining oil prices and predictions of excess production later in the year.

While spending on liquefied natural gas is expected to increase, investment in natural gas fields is expected to stay consistent with last year. The massive construction of facilities in the US, Canada, Qatar, and other areas is expected to result in a considerable increase in LNG investment.

The organization predicts that global energy investment will reach a record high of $3.3 trillion in 2025, a 2% increase over 2024.