Cautious US majors curb annual spend
Recovering oil prices will not be enough to convince producers to stump up additional cash, but investors may still benefit from a substantial dividend pay-out
Market volatility is set to continue to constrain annual capex spend among US majors and ‘superindies’, even as the rollout of Covid-19 vaccines boosts oil prices and the prospect of a return to normal economic activity. Operators in the US shale patch were particularly burned by the economic downturn last year, and the largest US firms remain wary about overextending themselves. In 2020, the trio of ExxonMobil, Chevron and ConocoPhillips posted a colossal combined $30.2bn loss as oil prices plunged and energy demand vanished. ExxonMobil recorded the biggest loss and is again cutting capex. The major suffered a $22bn loss in 2020 and was forced to slice $10bn from its 2019 capex budget, a 32

Also in this section
11 August 2025
The administration is pushing for deregulation and streamline permitting for natural gas, while tightening requirements and stripping away subsidies from renewables
8 August 2025
The producers’ group missed its output increase target for the month and may soon face a critical test of its strategy
7 August 2025
The quick, unified and decisive strategy to return all the barrels from the hefty tranche of cuts from the eight producers involved in voluntary curbs signals a shift and sets the tone for the path ahead
7 August 2025
Without US backing, the EU’s newest sanctions package against Russia—though not painless—is unlikely to have a significant impact on the country’s oil and gas revenues or its broader economy