A report by the International Energy Agency (IEA) shows that global investment in upstream oil and gas is set to hit $570 billion this year, representing an increase of 7% compared to 2023.
According to the IEA’s World Energy Investment 2024 report, around 40% of total upstream investment is allotted to existing fields while approximately 33% is being invested in frontier fields. The remaining 7% is being invested in unconventional petroleum-bearing formations.
A significant wave of investment is expected in LNG in the coming years as new liquefaction plants are built and looking to start operation in the second half of the decade, with new gas-fired power capacity coming online representing approximately 50-60 GW per year.
In addition to upstream investment, investment in sustainable energy by oil and gas companies grew to approximately $30 billion in 2023. Hydrogen electrolyzers witnessed the largest growth in low-emission fuel investment, having risen to around $3 billion per year.
Investment in sustainable aviation fuel reached $1 billion in 2023 while direct air capture projects saw an increase of 140% to $800 million. The report also showed that around 20 commercial-scale carbon capture projects reached the final investment decision stage last year while another 110 capture facilities, transport and storage projects are poised for the same in 2024.
