According to Wood Mackenzie, how much free cash flow is the global upstream oil and gas industry expected to generate in 2026 if average oil prices hold at $90/bbl, and how does that compare to the prior forecast based on $60/bbl?

Wood Mackenzie forecasts that the global upstream oil and gas industry will generate $495 billion in free cash flow in 2026 if the average international crude oil price remains at $90 per barrel — a figure that is double the previous expectation based on a $60-per-barrel oil price assumption.

What are the key capital allocation priorities of major oil and gas companies despite record free cash flow, according to Wood Mackenzie's analysis?

Despite record free cash flow, major oil and gas companies are maintaining strict capital discipline: capital expenditure budgets are largely unchanged, share buybacks are being reduced by only 5%, balance sheets are being strengthened and debt leverage lowered, and surplus funds are primarily directed toward acquisitions of high-quality upstream assets — with upstream M&A transaction value reaching a two-year high in the first half of the year.

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