The global upstream sector is entering a massive supply overhang that could depress crude prices for much of the year. In this brief update, Panuswee Dwivedi, Project Manager at ADI Analytics, breaks down how operators are stress-testing budgets and why capital is rapidly shifting from US shale to high-margin international offshore projects.
Key Highlights
- A major supply overhang: Global oil supply is expected to outpace demand by 4.5 million barrels per day, keeping Brent prices pinned around $55–$60.
- The offshore spending surge: While North American shale growth slows to just 1–2%, deepwater projects are accelerating, with offshore FIDs hitting a decade-high $164 billion.
- Tech-driven margins: To protect cash flows at lower price points, operators are leaning heavily into digital and AI-enabled solutions to drive margins past 35%.
Watch the full video below to explore where upstream oil and gas markets are heading, and to dive deeper, subscribe to ADI Plus to access our complete global upstream oil & gas outlook.
About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
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