The latest issue of our O&G Capex Outlook Special Report indicates that spending on oil and gas will increase for a second consecutive year in 2019, solidifying the return of upstream development momentum following one of the most aggressive downcycles in recent history. That said, spending caution will prevail as producers increase their focus on fiscal discipline and cost efficiency. From a basket of 113 of the world's largest oil and gas companies, we estimate capex reached USD507bn in 2018. We expect this will rise to nearly USD540bn in 2019, representing a gain of 6.1% y-o-y. While oil prices have experienced notable gains over the past year, this represents a relatively subdued increase in capex. Spending has been reined in as producers expand on efforts to boost profitability and shareholder value.

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