05.06.2025, 23:22
The IEA predicts a drop in investment in global oil and gas production in 2025 for the first time in 5 years
Source: OREANDA-NEWS
OREANDA-NEWS Investments of oil and gas companies in the upstream segment by the end of 2025 may decrease for the first time in the last five years: by 4%, to a level of just under $570 billion. This is the forecast of the International Energy Agency (IEA) analysts in the annual World Energy Investment report.
In particular, investments in oil exploration and production will decrease by 6%, while investments in gas will increase slightly.
According to IEA analysts, this dynamic is due to the desire of oil companies to increase the share of gas projects in their portfolios. "Part of the investments in gas production will be directed towards the continuation of LNG projects, for which significant amounts have already been spent, so they are less sensitive to the recent price drop and uncertain investment climate," the report says.
At the same time, global investment in oil refining will drop to a record low of less than $30 billion. With these funds, only 1 million barrels per day of new capacity will be commissioned, while a number of refineries will be closed by the same amount.
The share of investments by Middle Eastern companies in oil and gas exploration and production will exceed 20% of their total volume by the end of this year, the IEA predicts. A significant part of the investments will be directed to the expansion of gas projects in Saudi Arabia, including the Jafurah field, as well as the Rub al-Khali field in the UAE and the North Field in Qatar, which should become a resource base for LNG projects.
Investments in the production of American oil and gas by the end of 2025 may decrease by 10% compared to last year. IEA analysts call "oil shale producers," who accounted for about 15% of global upstream investment last year, the main victims of the drop in global energy prices in recent months.
Russia, whose share in the structure of global investments in oil and gas fell to 6% last year, the lowest since 2015, has prospects to increase it slightly this year. "Companies are looking for new ways to compensate for production at mature fields, but lower prices, difficulties in replacing the lost European market, sanctions, and a high tax burden are weighing on investment prospects," the report says.
The IEA emphasizes that the search for solutions to intensify and slow down the decline in production at existing fields is the main focus for oil and gas investments this year, which will account for about 40% of their total volume.
In particular, investments in oil exploration and production will decrease by 6%, while investments in gas will increase slightly.
According to IEA analysts, this dynamic is due to the desire of oil companies to increase the share of gas projects in their portfolios. "Part of the investments in gas production will be directed towards the continuation of LNG projects, for which significant amounts have already been spent, so they are less sensitive to the recent price drop and uncertain investment climate," the report says.
At the same time, global investment in oil refining will drop to a record low of less than $30 billion. With these funds, only 1 million barrels per day of new capacity will be commissioned, while a number of refineries will be closed by the same amount.
The share of investments by Middle Eastern companies in oil and gas exploration and production will exceed 20% of their total volume by the end of this year, the IEA predicts. A significant part of the investments will be directed to the expansion of gas projects in Saudi Arabia, including the Jafurah field, as well as the Rub al-Khali field in the UAE and the North Field in Qatar, which should become a resource base for LNG projects.
Investments in the production of American oil and gas by the end of 2025 may decrease by 10% compared to last year. IEA analysts call "oil shale producers," who accounted for about 15% of global upstream investment last year, the main victims of the drop in global energy prices in recent months.
Russia, whose share in the structure of global investments in oil and gas fell to 6% last year, the lowest since 2015, has prospects to increase it slightly this year. "Companies are looking for new ways to compensate for production at mature fields, but lower prices, difficulties in replacing the lost European market, sanctions, and a high tax burden are weighing on investment prospects," the report says.
The IEA emphasizes that the search for solutions to intensify and slow down the decline in production at existing fields is the main focus for oil and gas investments this year, which will account for about 40% of their total volume.
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