Key facts
- Wood Mackenzie forecasts the global upstream oil and gas sector could generate $495 billion in free cash flow in 2026.
- This projection assumes crude oil averages $90 per barrel.
- The Middle East conflict is expected to reduce global oil production by at least 3%.
- Saudi Arabia's oil revenue has risen despite lower output.
- Higher crude oil prices are driving Saudi Arabia's increased revenue.
- War-related disruptions have caused a drop in Saudi Arabia's oil output.
- Saudi Arabia redirected crude through pipelines to the Red Sea.
- Saudi Arabia's quarterly budget deficit has significantly decreased.
The global upstream oil and gas sector is poised for a significant financial uplift, with Wood Mackenzie forecasting a potential $495 billion in free cash flow for 2026. This projection is contingent on crude oil averaging $90 per barrel. The primary catalyst for this expected windfall is the ongoing conflict in the Middle East, which is anticipated to decrease global oil production by a minimum of 3%.