While investments in the global energy industry are expected to jump 8% from 2021 to 2022, investments in fossil fuels have not returned to pre-pandemic levels, according to the International Energy Agency (IEA).

Investments in upstream oil and natural gas activities are projected to rise 10% year/year in 2022, but are likely to fall short of the near-$500 billion investment level seen in 2019, the global energy watchdog said in its World Energy Investment 2022 report.

Among European and U.S. oil and gas companies, the IEA estimated that in 2022, the largest climb in upstream investments could be the result of a 30% increase in spending by the largest U.S. producers, including ExxonMobil, ConocoPhillips and Chevron Corp. 

However, cost inflation associated with the global...