Upstream

Thursday, September 10, 2026.

Slow Your Roll, Higher Cash Flows, Sunnier Outlook Not Yet Reflected in Expanded E&P Investment.

Published by Thomas Birkery and Nicholas Caccione.

Like rays from the rising sun streaking into a cold gray sky, sustained higher oil prices and a strong long-term outlook for natural gas has engendered a significant tonal shift to E&P boardrooms.

Industry executive surveys in Q2 2026 and observations by oil service firms reflect an optimism that suggests producers are warming to increasing activity to boost oil and gas output.

The key question is whether that has translated into higher investment.

In today's RBN blog, we discuss that shift in attitude and analyze mid-year E&P guidance to determine the impact on actual 2026 capital spending.

Strict fiscal discipline focused on increasing cash flow over raising production has dominated E&P budgeting since the pandemic threatened the financial stability of a chronically overspending industry.

I'll put you on the spot just a little bit.

I mean, what do you think is non-core work in an oil and gas company in Upstream?

Well, I mean, I'm trying to think what I would say is non-core work.

I mean, even in the production side of things, I mean, you know, service rigs, we're really dependent on them, but it doesn't seem like any, I might be wrong on this, but I don't know