IEA: Natural Gas Investment Hits 10-Year High This Year, Oil Investment Declines for Third Consecutive Year

The International Energy Agency released the "2026 World Energy Investment Report" on May 28, pointing out that the ongoing Iran war continues to disrupt the global energy market, with tanker passage through the Strait of Hormuz being obstructed, production halts in the Middle East, and enterprises from various countries are accelerating their layouts in other regions and increasing investment in renewable energy, liquefied natural gas, and coal to ensure supply security.

The report mentioned that global natural gas project investment will increase by more than 10% to $330 billion in 2026, setting a 10-year high; meanwhile, upstream oil investment will decline for the third consecutive year.

The report indicates that global energy industry capital inflows will grow by 5% to reach $3.4 trillion in 2026. Of this amount, $2.2 trillion will flow towards renewable energy, energy storage, power grids, and low-emission fuels, while oil supply investment will be less than $500 billion. The director of the International Energy Agency, Fatih Birol, stated, "Both producing and consuming countries are hurrying to diversify their trade routes and energy sources."

The increase in natural gas investment mainly comes from liquefied natural gas projects in the United States, but the current crisis also makes Asian importers wary of over-reliance on natural gas. Coal investment will reach a 14-year high of $180 billion, primarily driven by China and India. Nuclear energy investment will amount to $80 billion this year, showing a clear rebound trend.

Regarding the Middle East, oil and gas investment is expected to slightly decrease by 1% in 2026, with war damage, reduced income, and production halts weakening the region's capital deployment capabilities. In contrast, upstream investment in Africa and Central and South America will increase by more than 10%. However, due to the unclear duration of the situation in the Middle East, investors are still reluctant to fully shift their investment direction.