Energy investments worldwide fell by 12% on the year to just over US$1.7 trillion in 2016, with electricity investment outpacing oil and gas spending for the first time ever, the International Energy Agency (IEA) said in its World Energy Investment 2017 report.

Following a 44-percent plunge in the period 2014-2016, upstream oil and gas investment is set to rebound modestly this year, according to the IEA.

Investment in U.S. shale is set to rise by 53% and resilient spending in the big producing regions the Middle East and Russia are expected to push upstream investment to increase by 3% this year.

Rising investments in Mexico after a very successful offshore bid round will also contribute to higher upstream spending, the IEA said.