Wood Mackenzie now estimates that the global upstream oil and gas sector could generate $495 billion in free cash flow in 2026 if crude averages $90 per barrel, more than doubling its previous forecast based on a $60 oil price assumption. Yet the gains will be concentrated among the world’s largest producers, with the 49 national and international oil companies covered by Wood Mackenzie expected to capture $272 billion of the total. Related: War Sends Saudi Oil Output Down and Revenue UpMeanwhile, energy companies are expected to continue to deploy the excess cash to purchase attractive oil and gas assets. How boards navigate that tension will shape the industry’s strategic direction into 2027,” said Fraser McKay, Head of Upstream Analysis at Wood Mackenzie. Oil prices extended their decline on Thursday afternoon even as fighting between the United States and Iran continued to intensify across the Middle East.