59 INTEGRATED ANNUAL REPORT 2026 The global energy landscape continues to undergo a complex and uneven transition, shaped by the simultaneous imperatives of energy security, affordability and decarbonisation. While long-term policy ambition increasingly points toward lower-carbon energy systems, near- to medium-term market outcomes remain influenced by structural demand growth, supply constraints and capital discipline across energy value chains. In this context, energy transition is unfolding as a transition amidst energy addition rather than outright displacement, with renewable energy and electrification scaling rapidly to meet incremental demand, while existing fossil energy continues to play a stabilising role in ensuring system reliability. Global energy transition investment reached a record USD 2.3 trillion in 2025, with electrified transport, renewable energy and power grids accounting for most of the spending. System integration challenges, policy direction and capital constraints are emerging as critical determinants of the pace and shape of transition, resulting in differentiated outcomes across regions and sectors. MARKET LANDSCAPE YINSON PRODUCTION Offshore oil & gas production is expected to remain a critical component of the global energy system in the medium term, particularly in supporting energy security amid ongoing demand growth and geopolitical uncertainty. Despite increasing policy momentum toward decarbonisation, the International Energy Agency’s (“IEA”) Stated Policies Scenario projects global oil demand to remain around 100 mb/d in 2035, up slightly from 2024 levels, with demand peaking around 2030. Supply-side constraints have emerged as a structural risk. Without new fields and capital expenditure, global oil supply would fall by around 5.5 mb/d annually on average to 2035, and natural gas output by around 270 bcm per year. This means continued upstream investment is required to maintain supply adequacy and market stability as the offshore production market is likely to operate within a narrow corridor defined by sustained demand, constrained supply growth and heightened price sensitivity. 2020 2021 2022 2023 2024 2025 2,309 2,136 1,906 1,557 1,225 973 Clean industry Clean shipping Hydrogen Renewable energy Nuclear Electrified heat Power grids Electrified transport Energy storage CSS BUSINESS REVIEWS | MARKET LANDSCAPE USD 2.3 trillion global energy transition investment in 2025. 8.1% growth in energy transition investments from 2024 to 2025. USD 2.9 trillion average annual investment under the Economic Transition Scenario from 2026 to 2030. Global energy transition investment by sector (USD billion) Source: Energy Transition Investment Trends 2026, BloombergNEF.
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