Global Energy Investments To Hit Record $3.3 Trillion This Year: Report

(MENAFN- Yolo Wire) Global %Energy investments are set to hit a record $3.3 trillion U.S. this year, with two-thirds of that money going towards clean technologies, according to a new report by the International Energy Agency (IEA).

The IEA says that investors appear to be shrugging off economic and geopolitical uncertainty and continuing to put money to work in the energy sector.

That said, %Oil spending is projected to fall this year for the first time since 2020.

The Paris-based IEA said in its annual investment report that the focus of investment dollars remains clean technologies, with $2.2 trillion U.S. going to renewable energy projects, nuclear power, grid upgrades, electrification, and low-emission fuels.

The agency added that 2025 is the year when the world will officially enter what it calls the "Age of Electricity," underpinned by rapid uptake of electric vehicles.

Meanwhile, investments in oil, natural gas, and coal are likely to reach $1.1 trillion U.S. in 2025, the agency said.

The overall $3.3 trillion U.S. investment this year marks a 2% increase from 2024 levels.

The record spending and focus on clean technologies is positive for companies such as %NextEraEnergy (NYSE: $NEE), %FirstSolar (NASDAQ: $FSLR), and battery maker %Quantumscape (NYSE: $QS).

The spending also comes despite ongoing trade tensions, particularly between the U.S. and China over import tariffs, as well as wars in Europe and the Middle East.

However, given the current uncertainty, the IEA says that more money than usual is likely to be directed this year to energy security.

China is set to be the largest energy investor by far, accounting for more than a quarter of total spending.

And the %SolarEnergy sector is expected to be the biggest recipient of the investment dollars, with $450 billion U.S. funneled to the industry in 2025.

While clean technologies are seeing record investments, capital expenditures in the oil sector are expected to fall 6% as oil majors such as %Chevron (NYSE: $CVX) and %Shell (NYSE: $SHEL) pullback their spending.

The IEA said the dip in investment would be driven by lower spending in the price-sensitive U.S. shale patch, where producers require oil prices of $65 U.S. a barrel or higher to justify drilling.

West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading at $63.58 U.S. per barrel. Brent crude oil, the international benchmark, is trading at $65.52 U.S. a barrel.

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