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According to Sinochem New Network, on January 11, U.S. oil price websites reported that in 2025, due to low oil prices, oil and gas companies slowed down their expansion efforts; global investment in upstream oil and gas activities declined by 2.5%, falling to $420 billion. Energy experts at Wood Mackenzie predict that investment in upstream oil and gas will continue this trend in 2026, with a decline of at least 2%-3% on a year-on-year basis; the main reason for this decline is the reduction in spending by independent tight oil and shale oil producers in the United States. Analysts point out that with oil prices below $60 per barrel, the oil and gas industry, while focusing on its long-term resilience to risks, will see upstream investments decline for a second consecutive year. Capital expenditure in the upstream oil and gas sector is expected to decline by at least 2%-3% on a year-on-year basis in 2026, with a decrease of over 5% compared to the levels in 2024. Among them, reduced investment in North America and Europe will offset the increase in spending in Africa, Latin America, and the Middle East. Oil and gas companies generally prioritize maintaining profitability, ensuring sufficient free cash flow, and reducing debt, rather than blindly pursuing production growth; macroeconomic uncertainties further reinforce this trend. Analysts at Wood Mackenzie and Fitch Ratings, among others, believe that due to oil price fluctuations and concerns over oversupply, global oil and gas companies will maintain fiscal discipline in 2026, and may even further reduce their overall expenditures. The total upstream investment of the seven major international oil companies is expected to remain roughly the same as in previous years. (Pang Xiaohua)