The oil and gas industry needs cumulative investments of $4.3 trillion from 2025 to 2030 to meet growing demand and maintain market stability, according to the International Energy Forum (IEF). The latest report from IEF projects a rise in demand for oil from 103 million barrels per day in 2023 to 110 million bpd in 2030. Joseph McMonigle, Secretary General of IEF, emphasized the necessity of increased investment in new oil and gas supplies to ensure energy market stability and support global economic and social wellbeing. The report, produced in association with S&P Global, highlights that global upstream oil and gas capital expenditure is set to surpass $600 billion in 2024, with an additional $135 billion needed annually to reach $738 billion by 2030.
The report identifies North America and Latin America as the primary regions driving the projected increase in upstream capital expenditure, accounting for over 60 percent of global investments. Significant expansions are planned in Brazil and Guyana, contributing to Latin America’s role in non-OPEC supply growth. However, the IEF report notes substantial uncertainties regarding global oil and gas demand and the pace of the energy transition to net zero carbon dioxide emissions. Ensuring adequate investment levels is crucial for energy security and a just transition, as the sector faces potential declines in conventional crude production and steeper declines in non-conventional crude, including US shale, without additional drilling. The report also underscores the importance of reducing greenhouse gas emissions in upstream operations and highlights the increased spending by oil and gas companies to achieve regulatory and environmental goals.