The largest chunk of that is oil and gas exploration. Oil exploration investment has gone up by a factor of three since 2000, but output has only increased by 14 percent.
The Telegraph article worries about these assets becoming “stranded”. They say that global warming considerations may require for most of the oil to stay in the ground, in which case it will become difficult to realize any return on these high investments.
I agree in part.
The oil industry should refrain from increasing their exploration investments in this way. Go back to the $230 billion a year they invested in 2000.
The predictable outcome is that supply will become restrained. That in turn will increase oil prices, which will lead to higher profit margins for the oil industry, as well as higher valuations of their existing reserves. And less CO2 emissions from burning oil.