Oil and Gas Industry Requires $4.3 Trillion in Investments to Meet Demand
In a recent analysis, the International Energy Forum revealed that the oil and gas industry will need a total of $4.3 trillion in investments between 2025 and 2030 to satisfy increasing demand and uphold market stability.
Growing Demand for Oil
The report forecasts a rise in oil demand from 103 million barrels per day in 2023 to 110 million barrels per day by 2030, necessitating more investments in new oil and gas supply to ensure market stability.
Global Upstream Oil and Gas Capex Outlook
According to the analysis, global upstream oil and gas capital expenditure is expected to exceed $600 billion for the first time in a decade, with an additional $135 billion needed by 2030 to meet supply requirements.
Regional Investments
North America and Latin America are projected to dominate the increase in upstream capital expenditure, with over 60% of global investments planned for these regions. Latin America is expected to play a significant role in non-OPEC supply growth, particularly in conventional crude.
Support for Energy Transition
Increased capital expenditure in upstream oil and gas could support the energy transition and ensure energy security, according to the International Energy Forum. Without additional drilling, global conventional crude production could fall by over 20% by 2035.
Focus on Decarbonization
Oil and gas companies worldwide are ramping up efforts to reduce carbon dioxide emissions, with a focus on Scope 1 and 2 emissions in upstream operations. This shift towards decarbonization has contributed to the upward revision of capex forecasts.
Need for Copper Mining
In a separate report, the International Energy Forum highlighted the need for more copper mining to meet electric vehicle targets. Electrifying the global vehicle fleet would require opening 55% more new copper mines by 2035, urging governments to support this expansion.