Global Commodities: Global upstream Oil & Gas capital spending faces first contraction since 2020

At Any Rate

Global upstream oil and gas spending is expected to hit $543 billion this year, a 1.1% decrease from 2024, with reduced capital allocation across all regions except the Middle East. Capital spending in the US shale sector experienced a 3.2% drop in 2024, with forecasts indicating a further 1.9% decline in 2025, despite rising costs from tariffs on steel and other product. Despite conservative capital plans, US oil liquids production is set to rise by 672 kbd in 2025 and 530 kbd in 2026, boosted by substantial hedging during mid-June's oil price spike. Globally, oil liquids supply is projected to grow by 2.3 mbd this year.

Speaker:

Natasha Kaneva, Head of Global Commodities Research

This podcast was recorded on July 3, 2025.

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