US ExxonMobil did not announce a significant increase in spending (Getty)
The American “Energy Intelligence” magazine said that global energy companies It will raise its investments in exploration and oil production by 12% to $485 billion this year.
Over the past three years, the majority of global energy companies have avoided spending heavily to expand production in the wake of the 2020 oil crisis, prioritizing returning more money to shareholders in the form of dividends and share buybacks.
According to the oil bulletin, most oil and gas companies announced small increases in their capital spending for the current year 2023, and they also plan to modestly increase production, but this does not mean that these companies will not try to benefit from Oil prices Which is still high and close to $90 a barrel.
In its forecast for the current year 2023, Energy Intelligence indicates that global capital expenditures will reach $ 485 billion in the current year, which means an increase of 12% on an annual basis, and a recovery of approximately 30% from its levels in 2020.
Energy Intelligence quoted energy experts as saying that spending is unlikely to reach the $700 billion level that occurred during the peak of 2013-2014 in this decade, noting that most global companies prefer to focus on projects. oil Low cost, lower carbon emissions and faster speed.
American oil companies and major Western companies tend to invest in excellent reservoirs abroad, including the Guiana Basin, Brazil, the Gulf of Mexico, the North Sea and West Africa. These regions are also expected to drive the lion’s share of oil production growth outside the Organization of the Petroleum Exporting Countries (OPEC).
And a number of major oil and gas companies have announced larger-than-average capital expenditure increases for 2023 and beyond.
And last December, the company announced chevron US budget for capital spending for the fiscal year 2023, at a value of $ 17 billion; That is more than 25% of the expected spending in 2022.
Chevron said that upstream capital expenditures, i.e. exploration and production operations, include more than $4 billion to develop the Permian Basin, $2 billion for other shale oil assets, and approximately $2 billion to engage in projects that reduce carbon emissions or increase renewable fuel capacity, i.e. More than double the investment budget in the past year 2022.
Although Chevron’s 2023 spending will be significantly higher than capital spending in the 2020-2021 pandemic years, it is still well below the $30 billion annual average for the 2012-2019 period.
“Our capital balance sheets remain in line with previous guidance despite inflation,” said Mike Wirth, Chairman and Chief Executive Officer of Chevron, according to the Oil Price prospectus.
The company did not announce Exxon Mobil The US announced a significant increase in spending, but said its capital spending for 2023 would be closer to the maximum annual target of $20 billion to $25 billion.
ExxonMobil says more than 70% of its capital investments will be in the US’s Permian Basin, Guyana, Brazil and LNG projects around the world.
These investments will help increase the company’s production in oil production by 500 thousand barrels per day, to 4.2 million barrels per day by 2027.
ExxonMobil also revealed plans to increase spending on low-carbon projects by 15% to $17 billion through 2027, and expand its share buyback plan to $50 billion through 2024, including $15 billion in 2022.
