IEA Reverses Course on Oil and Gas Investment

Core Insights - The International Energy Agency (IEA) has shifted its stance, indicating that new oil and gas resources are necessary to maintain current output levels due to accelerated decline rates at existing fields [1][2][5] Group 1: Investment Needs - To maintain current production levels, the industry will require over 45 million barrels per day (bpd) of oil and approximately 2,000 billion cubic meters (bcm) of natural gas from new conventional fields by 2050 [2] - Nearly 90% of annual upstream investment is allocated to offsetting supply losses at existing fields, with only a small portion aimed at meeting demand increases [4] - The IEA acknowledges that underinvestment poses a significant threat to global energy supply, highlighting the urgency for new investments [5] Group 2: Production Decline - The decline rates of operating oil and gas fields have accelerated, primarily due to increased reliance on shale and deep offshore resources [1][5] - The absence of upstream investment could eliminate production equivalent to that of Brazil and Norway combined from the global market each year, emphasizing the need for the industry to increase investment just to maintain current output levels [6]