Resilient Upstream Portfolios: Weathering the cycles
Upstream Oil & Gas
2020 was a dramatic year for the global upstream industry, with an unprecedented 9 mbd demand drop and the Brent price falling from $64/bbl in January to $18/bbl in April and WTI going negative for a day. Long-term expectations for the industry suffered as peak oil demand scenarios became more common and countries and companies made net-zero commitments. Companies slashed capital spending; some made emissions reduction commitments that will require them to pivot their portfolios away from oil; and some even announced production decline targets. Resilient upstream portfolios with low cost and low emissions are the new goal. Are these trends here for the long term? To what extent will companies be able to lower costs and protect margins? How will they build resilient portfolios that can weather future cycles? Will digital technologies help? What does it all mean for the future of upstream?