Climate targets exceeded despite low investment

Growth in global oil and gas investment will slow in 2024, but will remain well above the levels needed to meet climate targets by 2030, according to the International Energy Agency (IEA).

Share:

Investissements pétrole gaz climat

Comprehensive energy news coverage, updated nonstop

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 €/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

The International Energy Agency (IEA) forecasts that global upstream investment in oil and gas will rise by 7% to $570 billion in 2024, following a 9% increase in 2023. Although these investments remain 30% below the 2015 peak thanks to cost efficiency improvements, they remain considerably high compared to the levels needed to achieve the 2030 climate targets. At the same time, global spending on clean energy, such as renewables and energy efficiency, has almost doubled that on fossil fuels. However, the IEA points out that this year’s oil and gas investments are in line with projected oil demand levels for 2030 under the IEA’s Stated Policies Scenario (STEPS). This scenario forecasts a stabilization or reduction in demand for coal, oil and natural gas before 2030.

Consumption scenarios and investment requirements

According to the IEA’s central Announced Pledges Scenario (APS), upstream spending is set to be around 35% higher than necessary to meet national climate targets by 2030. What’s more, global upstream investments are more than double the levels required to limit oil consumption in line with the objectives of the Paris Agreement. The IEA reiterates that no further investment in long-term oil and gas projects is needed to meet global demand over the coming decades. The trajectory of oil and gas consumption is limited by the rapid growth of renewable energies, energy efficiency and otherclean energy sources.

Total energy expenditure and future uncertainties

Global energy investment is set to exceed $3,000 billion in 2024 for the first time, of which $2,000 billion will be devoted to clean technologies. These technologies include renewables, electric vehicles, nuclear power, power grids, storage, low-emission fuels, efficiency improvements and heat pumps. The IEA forecasts that demand for gas, oil and coal will peak by 2030. In its APS scenario, global oil demand is expected to reach around 97.5 million barrels per day in 2030. By contrast, S&P Global forecasts peak demand for oil and biofuels at around 111 million barrels per day in 2031, while OPEC (Organization of the Petroleum Exporting Countries) predicts demand of 110.2 million barrels per day in 2028.

The refining sector and the impact of uncertainty

The IEA forecasts that investment in oil refineries will fall by 5% in 2024, following a similar trend seen in 2023 with investment just below $37 billion. Around 800,000 barrels per day of new refining capacity are expected to come on stream in 2024, mainly in China, India and the Middle East due to competitive operating costs and growing demand. Faced with a growing gap between long-term climate change targets and measured global emissions, many refiners are opting to rationalize capacity or switch to low-carbon processes. Uncertainties surrounding future demand growth present significant challenges for new investment in the refining sector. Oil and gas companies’ investments in clean energy reached $30 billion in 2023, representing just 4% of the industry’s overall capital expenditure that year. Meanwhile, investment in coal continues to grow, with over 50 gigawatts of unmitigated coal-fired capacity approved in 2023, the highest figure since 2015. Spending on clean energy by oil and gas companies in 2023 is up 30% on 2022, but remains well below the 65% increase seen between 2021 and 2022, partly reflecting inflation and supply chain issues for some renewable projects.
Analysis of the sector’s investments and outlook shows a tension between climate ambitions and the reality of fossil fuel investments, necessitating a continual reassessment of strategies and priorities to achieve a sustainable energy future.

A parliamentary report questions the 2026 electricity pricing reform, warning of increased market exposure for households and a redistribution mechanism lacking clarity.
The US Senate has confirmed two new commissioners to the Federal Energy Regulatory Commission, creating a Republican majority that could reshape the regulatory approach to national energy infrastructure.
The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.
The halt of US federal services disrupts the entire decision-making chain for energy and mining projects, with growing risks of administrative delays and missing critical data.
Facing a potential federal government shutdown, multiple US energy agencies are preparing to suspend services and furlough thousands of employees.
A report reveals the economic impact of renewable energy losses in Chile, indicating that a 1% drop in curtailments could generate $15mn in annual savings.
Faced with growing threats to its infrastructure, Denmark raises its energy alert level in response to a series of unidentified drone flyovers and ongoing geopolitical tensions.
The Prime Minister dismissed rumours of a moratorium on renewables, as the upcoming energy roadmap triggers tensions within the sector.
Kuwait plans to develop 14.05 GW of new power capacity by 2031 to meet growing demand and reduce scheduled outages, driven by extreme temperatures and maintenance delays.
The partnership with the World Bank-funded Pro Energia+ programme aims to expand electricity access in Mozambique by targeting rural communities through a results-based financing mechanism.
The European Commission strengthens ACER’s funding through a new fee structure applied to reporting entities, aimed at supporting increased surveillance of wholesale energy market transactions.
France’s Court of Auditors is urging clarity on EDF’s financing structure, as the public utility confronts a €460bn investment programme through 2040 to support its new nuclear reactor rollout.
The U.S. Department of Energy will return more than $13bn in unspent funds originally allocated to climate initiatives, in line with the Trump administration’s new budget policy.
Under pressure from Washington, the International Energy Agency reintroduces a pro-fossil scenario in its report, marking a shift in its direction amid rising tensions with the Trump administration.

All the latest energy news, all the time

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3€/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.