Enverus Intelligence Research, a part of Enverus, the leading global energy data analytics and SaaS technology company, has released a new report analysing who and where E&P capital budgets are being spent for 2022.
“We expect a 22% increase this year in y/y North American land upstream capital spending by oil and gas producers, driven by price inflation, the exhaustion of inventories of already drilled wells and some production growth,” said Mark Chapman, report author and Senior Vice President at Enverus Intelligence Research.
Key takeaways from the report:
- E&Ps are expected to increase 2022 North American land upstream capital expenditures by 22%.
- Price inflation, the exhaustion of DUC inventories and production growth support the need for higher capital expenditures. Higher commodity priced enables operators to increase expenditures while maintaining free cash flow generation and sustainable reinvestment rates.
- The Permian Basin accounts for the approximately 43% of 2022 North American land upstream CAPEX.
Read the article online at: https://www.worldpipelines.com/business-news/22022022/capex-burndown-22-increase-in-north-american-land-upstream-capital-spending/