The International Energy Agency (IEA) expects global oil project investment to fall for a third consecutive year in 2026. Spending will drop below $500 billion despite rising oil prices.
A severe supply shock caused by the closure of the Strait of Hormuz drives this decline. IEA Executive Director Fatih Birol states the world is facing its largest energy security crisis, which will reshape global investment strategies.
Total energy investment will rise to $3.4 trillion as nations diversify trade routes and energy sources. Capital is shifting toward power grids, renewables, nuclear energy, and liquefied natural gas (LNG) export projects.