BAKU, Azerbaijan, May 14. Global investments in fossil fuels in 2022 and 2023 surged by $140 billion to almost $1.1 trillion, Trend reports via Rystad Energy, independent energy research and business intelligence company from Norway.
"Global energy reliability concerns are triggering a surge in investments – but this uptick is only temporary, and service companies should capitalize now before the focus returns to the energy transition," the report said.
As the study shows, before the Russia-Ukraine war sparked, the projected investment in global oil and gas projects stood at $945 billion.
Rystad Energy research indicated that, of this $140 billion growth, an additional $80 billion accounted for shale production, as activity grew by 30 percent and prices for oil services jumped by almost 50 percent. Offshore production grew by $40 billion, while other land-based activities increased by another $20 billion.
"Energy security concerns have unlocked significant additional investments in oil and gas, boosting spending forecasts and sending the expected timing for peak oil demand out in time. The first wave of extra spending over the past 15 months mainly went to oil and gas, while low-carbon industries faced a slowdown due to high inflation and shortages in the supply chain. But low-carbon spending will bounce back, as energy security is not only about securing oil and gas here and now but also about securing cleaner energy for the future," the report noted.
