HomeNewsIEA: Natural gas spending to hit 10-yr high in 2026 as oil investment falls

IEA: Natural gas spending to hit 10-yr high in 2026 as oil investment falls

6/1/2026

Global investment in natural gas projects is set to rise by more than 10% this year to $330 ​B, its highest level in 10 yrs, while upstream oil ‌spending declines for a third straight year, the International Energy Agency (IEA) said in a report.

As global energy markets remain disrupted by the Iran war, which ​has halted tanker traffic through the Strait of Hormuz and ​caused production stoppages across the Middle East, companies are accelerating ⁠investment in other geographies and boosting spending on renewables, LNG ​and coal to shore up supply security.

"We are already seeing intensified efforts ​by both producer and consumer countries to diversify trade routes and energy sources," IEA Director Fatih Birol said in a statement.

The IEA's World Energy Investment 2026 ​report says:

  • Capital flows to energy sector will grow 5% in ​2026 to reach $3.4 T, despite Middle East disruptions.
  • $2.2 T will go to renewables, energy ‌storage, ⁠power grids and low-emissions fuels.
  • Less than $500 B will be invested in oil supply.
  • Natural gas growth largely from U.S. LNG projects, but current crisis has made Asian importers cautious on gas dependence.
  • Coal investments will ​reach a 14-yr ​high, hitting $180 B, ⁠driven by China and India.
  • Nuclear making a comeback with $80 B in spending this year.

PIVOT AWAY FROM MIDDLE ​EAST?

  • Middle East oil and gas investment expected to ​fall 1% ⁠in 2026.
  • Damage, lower revenue and production stoppages are reducing ability to deploy capital.
  • By contrast, upstream investment in Africa, Central and South America will ⁠jump ​more than 10% in 2026 as ongoing ​projects gain momentum.
  • Investors hesitant to fully pivot away, due to uncertainty over length of ​Middle East disruptions.

 

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