"Our analysis of the latest annual reports from the majors clearly indicates that 'super profits' are back for large E&P companies. Free cash flow before financing activities was at a record high in 2018, and the mega profits were typically used to pay down debt and increase payments to shareholders," Erlingsen added. For 2019, Rystad Energy believes the high free cash flow for E&P companies will continue, hinting that this could be another blockbuster year for these players.
Lower activity: Global investments within the upstream industry have fallen from around $900 billion to $500 billion.