Fact box – Underinvestment in oil and gas

After a sharp growth spurt related to the US "shale revolution", global investment in upstream oil and gas operations has declined substantially since 2014 [27]. According to the IMF [27], this decline is greater than one produced by price fluctuations in a cyclical industry. Although this development could have several causes, the IMF notes that expectations of a rapid energy transition have led to insufficient investment in oil and gas. It calls for greater coordination of climate efforts which balance the growth of renewable energy and new enterprises with the need to maintain oil and gas production into the future.