O&G upstream investment must rise to US$525b annually to ensure market balance — report

KUALA LUMPUR (Dec 9): Oil and gas (O&G) upstream investment will need to increase and be sustained at near pre-Covid-19 levels of US$525 billion (about RM2.21 trillion) through 2030 to ensure market balance despite slowing demand growth. A recent report titled “Investment Crisis Threatens Energy Security” by the International Energy Forum and IHS Markit said upstream investment in the O&G sector in 2021 was depressed for a second consecutive year at US$341 billion — nearly 25% below 2019 levels. Meanwhile, O&G demand is now near pre-pandemic highs and will continue to rise for the next several years, particularly in developing countries.