Global energy investment is projected to soar to an all-time high of 3.3 trillion US dollars this year, and for the first time, clean energy is set to attract more than twice the capital going into fossil fuels. That’s according to the 2025 World Energy Investment Report released by the International Energy Agency.
The IEA says the sharp rise is being driven by falling costs for technologies like solar and wind, as well as growing demand for energy security in countries grappling with geopolitical instability.
Fatih Birol, the agency’s executive director, stated that while oil and gas will remain part of the energy mix, nations like the U.S. and Canada are also turning to nuclear, wind, and solar to build more resilient systems.
Meanwhile, upstream oil investment is expected to dip by 6% this year, the first annual decline since the pandemic-era crash in 2020, and the largest drop since 2016. The IEA attributes this to lower oil prices and weakened global demand forecasts.
Global refinery investment is expected to drop to its lowest level in a decade this year, according to the International Energy Agency. The IEA reports that although oil and gas spending was initially forecast to remain steady, declining oil prices have dampened investment sentiment. Total spending in oil and gas production for 2025 is now projected at just under 570 billion US dollars.
In sharp contrast, the liquefied natural gas sector is on track for record growth. The IEA says between 2026 and 2028, the world will see its largest-ever LNG capacity expansion, driven by major new projects in the U.S., Qatar, Canada, and other countries.