Energy Capital Expenditures: Steady Growth Ahead

Global capital expenditures in energy and natural resources are increasing, but the growth is anything but uniform. The utilities, oil and gas, and mining sectors are charting distinct investment paths over the next three years, shaped by shifting priorities and regional capabilities. Utilities and mining companies have announced plans to increase their capex spending by 11% and 8%, respectively, over the next three years compared with the previous three. That's driven primarily by the global energy transition. Meanwhile, oil and gas companies are planning to sustain the already-significant investment levels of the past three years.

Oil prices and other uncertainties could alter investment plans, particularly in offshore wind and other renewable energy generation projects that face regulatory challenges and difficult project economics. Despite these uncertainties, the data suggests a world investing in energy security and transition, but not always in the same place or at the same pace. The imbalance raises critical questions about how quickly and equitably the global energy system can evolve.

Here are the biggest takeaways: