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Is the upstream oil and gas industry on-track to generate free cash flow?

Is the upstream oil and gas industry on-track to generate free cash flow?

Report summary

The Brent price required for cash-flow neutrality continues to fall. The weighted average was US$93/bbl heading into 2015, US$75/bbl by the end of the year and US$65/bbl entering 2016. Action taken since has reduced our current estimate to just US$53/bbl; an impressive 40% lower than 18 months ago. But can companies generate free cash flow? We review the current corporate positioning, and the strategic actions taken.

What's included?

This report includes 2 file(s)

  • Is the Upstream oil and gas industry on-track to generate free cash flow April 2016.pdf PDF - 1.05 MB
  • Is the Upstream oil and gas industry on-track to generate free cash flow April 2016.xls XLS - 175.00 KB


This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Key Messages
  • Surviving the cycle
  • Capital budgets remain the key strategic lever
  • Peer-group positioning
  • What to expect during 2016?
    • Continued push for cash flow neutrality
    • Balance sheets at both ends of the spectrum will evolve
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Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

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