There's plenty of investments in oil and gas to keep pace with global demand, Norwegian consultant group Rystad Energy said amid claims of a lack of capital.
Leaders at the Organization of the Petroleum Exporting Countries have claimed that investment trends in the so-called energy transition, the move away from fossil fuels, is taking capital away from exploration and production.
That would lead to less fossil fuels at a time when some new energy forms, such as hydrogen, are not yet at parity with more polluting forms of energy.
Rystad found investments in exploration and production, called the upstream side of the industry, peaked in 2014 at $887 billion globally.
Spending last year was around $500 billion and the consultancy said it would be easy to assume that upstream activity edged lower in response to declines in capital spending.
Rystad said its modelling, however, shows everything from evolving portfolio strategies to lower overall prices means the industry can do more with less capital.
While investments have indeed declined from peak levels, production globally is on pace with trends from when capital flows were stronger.
"Contrary to popular opinion, the world is investing appropriate amounts of money in fossil fuel production to satisfy demand," said Espen Erlingsen, the head of upstream research at Rystad.
"Cost savings mean operators can produce the same amount of oil at a lower cost, and we don't foresee an oil supply crisis due to underinvestment on the immediate horizon."
In terms of operations, Rystad said all wells completed last year yielded nearly 32 billion barrels of oil, which as 15% below 2014. The resource potential is expected to improve further this year, with much of that coming from U.S. shale and deepwater basins in the Gulf of Mexico.
The rate, however, of total U.S. production growth is slowing down. Between 2013 and 2014, total U.S. production increased by 14%, but the pace is only around 1.7% from year-ago levels, should federal forecasts prove accurate.
That said, the United States is the clear global leader when it comes to crude oil production, as well as exports of liquefied natural gas.
Total U.S. crude oil production could average 12.1 million barrels per day, eclipsing 2014 levels by at least 3.5 million bpd, and exceeding the output from the likes of Russia and Saudi Arabia.
