According to S&P Global Ratings Industry Top Trends 2021: Oil and Gas report, the outlook for the global upstream and refining portfolio remains largely negative. Companies are still struggling to generate breakeven cash flow, which resulted in a brief wave of mergers and acquisitions (M&A) in the U.S. upstream space. Most of the M&A has been completed with low premiums and financed through all-stock transactions. Exploration and production (E&P) and oilfield service companies continue to see a wave of defaults and distressed exchanges due to lack of capital market access

Global energy demand will most likely resume an upward trajectory when the pandemic recedes, driven by China, India, and other expanding economies.

Understand what to look out for in 2021:

• Ratings trends and outlook on the global oil and gas sector
• Shape of recovery for the sector
• Credit metrics and financial policy
• Industry outlook including key risks and opportunities
• Industry forecasts including revenue, capex growth, cash flow, return on capital employed and debt paying abilities