Bruised by a historic downturn, upstream operators across the globe continue slashing capex budgets, scaling back operations and reducing their workforce.

The future of Europe’s upstream sector—which was already in transition and overwhelmed by environmental and regulatory challenges—is now more uncertain than ever, according to Wood Mackenzie analysts. Even as significant capex reductions have been made, tougher decisions are still to come on pre-final investment decision (FID) projects across various European regions.

In addition, some 200 mid- and small-sized oilfield service companies in Europe could become insolvent as purchases on the oilfield service market are set to drop by $5 billion this year compared to 2019, as reported by Rystad Energy.

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