Upstream spending slides, cost-cutting kicks in
The oil industry has tightened its belt several notches, getting better at extracting more oil for less money, says the IEA
Investment in the oil and gas sector fell by 26% to $0.65 trillion in 2016, partly thanks to less drilling as the low oil price hit investment—but also because upstream players have made big strides in cutting costs. In its World Energy Investment 2017 report, the International Energy Agency (IEA) also forecasts that upstream spending will rebound slightly in 2017, by 3% in real terms—a rise largely driven by a 53% increase in US shale investment and resilient spending in the Middle East and Russia. Evidence of an uptick in investment elsewhere is visible too. Wood Mackenzie reports that the number of upstream projects reaching final investment decision in 2017 could double to 25 compared wi
Also in this section
5 December 2025
Mistaken assumptions around an oil bull run that never happened are a warning over the talk of a supply glut
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
