Following the publication of the upstream industry’s first quarter results, a Rystad Energy analysis reveals a gloomier investment-budget picture than previously thought. Global spending is now forecasted to reach $383 billion this year, the lowest level in 15 years and a staggering 29% decrease of $156 billion compared to 2019. With 2019’s upstream investments calculated at $539 billion, the decline is set to bring annual investment to a level lower than that of the previous downturn. Spending is also expected to be largely flat in 2021, landing only marginally higher than 2020 at $386 billion. Before the Covid-19 pandemic, Rystad Energy expected total upstream investment would maintain last year’s levels, both in 2020 and 2021. We expect shale and tight oil investments will take the biggest hit, now forecast to fall by 52.2% y/y to $67.3 billion. Oil sands investments will follow, with a decline of 44% to $5.1 […]