During the international energy gathering in Houston, CERAWeek, the Secretary-General of OPEC, Haytham al-Ghais, highlighted a striking trend: the yearly drop in global oil investment is approximately $500 billion. The statement, reported by DEA News, underscores a broad shift in how the oil industry allocates capital as markets reassess risk and future demand projections. Al-Ghais emphasized that this retreat in funding is not isolated to one region, but reflects a concerted hesitancy across major oil-producing economies and investment communities worldwide.
Al-Ghais noted that the downturn in investment runs parallel to growing concerns about energy security and the consistent availability of energy supplies. In his view, the market’s perception of risk and the need for reliable, long-term energy access are shaping capital flows, potentially constraining the industry’s ability to maintain existing production capacity and pursue new projects that could meet rising demand in the coming years.
In February, Al-Ghais stated a demand outlook placing oil consumption at about 102 million barrels per day in 2023, with a projection that this level would surpass pre-pandemic figures by nearly 1.9 million barrels daily. That forecast implies a sustained, elevated demand trajectory that many in the sector say warrants steady investment to sustain supply, even as policymakers and investors weigh transitions toward lower-emission energy sources.
Majid Jafar, who previously led Crescent Petroleum as chief executive and remains a prominent figure in the Gulf’s private oil and gas sector, linked the lack of investment to a broader energy crisis that many analysts describe as global in scope. He argues that insufficient capital for exploration, development, and infrastructure threatens the resilience of the energy system at a time when demand signals remain robust, particularly in fast-growing regional markets and energy-intensive industries.
Industry observers note that this investment constraint occurs as producers balance the competitiveness of oil with the push toward energy diversification. The convergence of higher operating costs, evolving policy frameworks, and the need to finance new technology-rich projects adds complexity to decision-making in both mature and emerging markets. The result could be tighter supply dynamics if long-term projects face delays or cancellations, reinforcing the importance of strategic planning and coordinated policy support across North American and global energy sectors.
From a market perspective, the debate around investment translates into questions about how quickly supply can respond to shifts in demand, how infrastructure readiness affects prices, and what role public and private capital should play in sustaining reliable energy for consumers and industries in Canada, the United States, and beyond. As industry leaders voice concerns about the pace of funding, the path forward may involve a careful mix of sustaining conventional production while accelerating investments in modernization, efficiency gains, and transitional technologies that help bridge toward lower-emission outcomes without compromising reliability.
Ultimately, the discussions at CERAWeek capture a critical moment for energy policy and markets. The balance between safeguarding energy access and managing climate commitments will influence investment strategies for years to come, guiding decisions that affect households, manufacturers, and energy-intensive sectors across North America and the wider world. Stakeholders continue to monitor demand indicators, geopolitical developments, and policy signals as they chart a course through a period of transformation and uncertainty, aiming to preserve energy security while advancing practical pathways to cleaner energy.