The industry downturn that began in the second half of 2014 forced oil and gas producers to cut spending and suspend, delay or cancel upstream development projects. This analysis reveals how much capital the industry has taken off the table, how much production has been deferred, and what are the revised spending and production outlooks for the next five years as oil prices recover.

The industry was on its way to spending $620 billion in 2014 with Brent staying above $100 per barrel well into the third quarter of the year. Initially, the price decline had little effect on spending as producers’ annual budgets were mostly set at the beginning of the year. The price-collapse impact was mostly felt by U.S. shale producers as their investment cycle is much shorter, thus shale investment is more sensitive to short-term commodity-price changes.

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