IEA sees $3.4T global energy spend 2026, oil investment down

Global energy investment is undergoing a significant transformation, driven by supply disruptions from the ongoing conflict in the Middle East, according to a new report from the International Energy Agency. The agency projects total global energy spending will reach $3.4 trillion in 2026, with a pronounced shift away from oil and toward electricity infrastructure, renewables, and natural gas.

The IEA’s World Energy Investment 2026 report indicates that spending on oil supply is set to fall below $500 billion this year, marking a third consecutive annual decline. This drop is occurring despite higher crude prices, which have been volatile since the conflict effectively closed the Strait of Hormuz, a critical waterway for nearly one-fifth of the world’s seaborne crude oil. The resulting supply shortages and price spikes have prompted countries and companies to reassess long-term energy security.

In contrast, investment in natural gas is projected to rise by more than 10% to $330 billion, its highest level in a decade. This surge is largely supported by a wave of new liquefied natural gas export projects, particularly in the United States and Qatar. Meanwhile, overall energy...