For oil and gas supply to meet growing demand – and maintain market stability – upstream CapEx spending must grow by 22% per year through 2030, according to a new report from intergovernmental organization the International Energy Forum (IEF) and market intelligence firm S&P Global Commodity Insights.
The report – titled “Upstream Oil and Gas Investment Outlook” – anticipates global oil demand to rise to 110 million barrels per day (bpd) by 2030, up from 103 million bpd in 2023. While global upstream CapEx is already expected to rise by $24 billion in 2024, it will need to increase by another $135 billion per year through 2030 to offset future production declines, meet anticipated demand growth and account for cost inflation.
According to the IEF, this surge in oil and gas investment aligns with the energy transition and global climate goals by establishing a foundation of energy security.
“Well-supplied and stable energy markets are critical to making progress on climate, because the alternative is high prices and volatility, which undermines public support for the transition as we have seen in the past two years,” said Joseph McMonigle, Secretary General of the IEF.