In a new report the International Energy Agency (IEA) showed that the global energy investment fell by 8 per cent in 2015, with a drop in oil and gas upstream spending.
Total investment in the energy sector reached US$ 1.8 trillion in 2015, down from US$2 trillion in 2014, according to the World Energy Investment 2016 report. The new annual report provides a comprehensive picture of the current investment landscape across fuels, technologies and countries.
IEA Executive Director Fatih Birol said: "We see a broad shift of spending toward cleaner energy, often as a result of government policies. While some progress has been achieved, investors need clarity and certainty from policy makers. Governments must not only maintain but heighten their commitment to achieve energy security and climate goals."
The report showed that the energy supply spending in 2015 stood at US$315 billion with China once again the world’s largest energy investor last year thanks to robust efforts in building up low-carbon generation and electricity networks, as well as implementing energy efficiency policies.
The Middle East and Russia emerged as the most resilient regions to spending cuts, thanks respectively to lower production costs and currency movements. As a result, national oil companies accounted for 44 percent of overall upstream investments, an all-time high.
Investment in the United States’ energy supply declined to about US$280 billion in 2015, falling nearly US$75 billion, due to low oil prices and cost deflation, representing half of the total decline in global energy spending.