Majors Plan Cautious Hike To 2019 Capex

*The five key majors’ results indicate plans to hike capex by around 8.5% for 2019. Exxon plans the biggest hike to an expected $30bn for 2019, up 16% on $25.9bn for 2018. A key focus is US shale, “to capture upside value in the Permian,” US Gulf downstream (see p7) and off Guyana and Brazil.

*Whilst the majors continue to tout capital discipline, spending has edged up – only BP saw a fall for 2018. And even for BP spending rose towards the end of the year: it was $4.4bn for Q4, well above the 2017 figure on an annualized basis.

*Shell is targeting $25-$30bn capex for 2019, leaving room for a substantial hike from the $24.8bn 2018 figure. As with BP, Shell’s capex figure for Q4 2018 – $8bn, equating to $32bn on an annualized basis – already suggests that it will have its work cut out. “We are pleased with the improvements we are seeing in capital efficiency, driven in large part by lower unit development costs. We’re continuing to do more with less,” Shell CFO Jessica Uhl says. (CONTINUED - 300 WORDS)


chart Majors Plan 8.5% Hike To Collective 2019 Capex* But Combined Spend Still Little More Than Half 2014 Levels ($Bn)
chart Exxon, Having Overtaken Shell As Top Spender For 2018 Plans The Biggest Boost To Spending For 2019 ($Bn)