Global oil and gas majors have reduced their investments in the energy transition for 2025, marking the first annual decline in eight years. According to a report released on Wednesday, spending on low-carbon technologies by these companies fell by more than one-third over the past year, dropping from over $38 billion in 2024 to $25.7 billion. Low-carbon expenditures accounted for 6.5% of the companies' total capital spending, down from nearly 10% the previous year. Analysts noted that this is the lowest proportion in five years. Not all companies cut back on energy transition-related investments. Repsol and Saudi Aramec were the largest investors in low-carbon technologies in 2025, with each committing approximately $4 billion, an increase from the prior year. Overall, oil and gas firms are tightening their investment budgets in response to investor demands while focusing more intently on their core fossil fuel businesses. This trend is particularly pronounced in the Americas, where policy shifts under U.S. President Trump have dampened investment in renewable energy. The region experienced the steepest spending decline. Analysts stated in the report, "Since the beginning of 2025, policy volatility from the Trump administration—including permitting delays and stop-work orders—has significantly increased execution risks for capital-intensive offshore wind projects." They added that investment by oil and gas giants is expected to continue slowing in the coming years.