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2025-09-16 23:47:12
The International Energy Agency (IEA) stated in its latest report that as production from existing oil fields declines at an accelerating rate, the world must continue to invest in oil and gas to maintain current production levels. According to the report, released on Tuesday, annual investment in upstream sectors, including exploration, drilling, and production, will need to reach approximately $540 billion by the end of 2050, compared to an estimated $570 billion this year. As early as 2021, the agency stated that investment in new oil, coal, and gas projects was unnecessary on the path to achieving net-zero emissions by mid-century. According to the IEA, if upstream investment in existing oil fields were halted, global daily production would decline by 5.5 million barrels per day over the next decade, equivalent to the combined annual output of Brazil and Norway. The Organization of the Petroleum Exporting Countries (OPEC) criticized the agency on Tuesday, saying its 2021 report and forecast of peak oil demand "discourage investment and increase uncertainty about long-term oil demand." The IEA said that without additional capital investment, oil and gas production in developed economies could fall by about 65% over the next decade, while the decline in the Middle East and Russia would be 45%. As a result, production from existing oil fields will become increasingly concentrated in OPEC+ members. "Global oil and gas supply will become more concentrated in a few countries in the Middle East and Russia, with implications for energy security," the IEA said.
