Global Upstream Capex Set To Fall Again In 2026 Amid Low Oil Prices

Market Intelligence Analysis

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Why This Matters

Global upstream capex is expected to decline for the second consecutive year in 2026 due to low oil prices, prioritization of profitability, and reduced spending by U.S. independent producers.

Market Impact

Market impact analysis based on bearish sentiment with 90% confidence.

Sentiment
Bearish
AI Confidence
90%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

Last year, upstream oil investment was projected to have declined 2.5% Y/Y to $420 billion after low oil prices put pressure on producers and slowed expansion plans. Companies across the industry continued to prioritize profitability, free cash flow, and debt reduction over aggressive production growth, a trend reinforced by macro uncertainty. The decline was also driven by reduced spending by U.S. independent light tight oil and shale producers, even as national oil companies (NOCs) in the Middle East increased their investment, and spending on…

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Original article published by OilPrice.com on January 12, 2026.
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