Big Oil lifts output to record despite 49% capex cut

September 21, 2026 at 04:00 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The 30 largest U.S. publicly traded oil and gas producers cut capital expenditure 49% in 2025, yet lifted production to an all-time high. Revenue rose 7% as efficiency gains and shorter-cycle assets offset lower drilling spend. Exploration spending fell 11% to $4.8 billion, just 3% of total capex.

Key Facts

Capital expenditure by the 30 largest U.S. publicly traded E&P companies fell 49% year-over-year in 2025, according to EY.
Oil production by the group hit an all-time high in 2025 while revenue increased 7%.
Exploration spending fell 11% to $4.8 billion, accounting for only 3% of total capital expenditures.
Exxon Mobil, Chevron, BP, Shell and TotalEnergies have collectively spent more than $100 billion annually on dividends and buybacks over the past five years.
Money spent on acquisitions fell 70% as the previous consolidation wave lost steam.

Spending Cuts and Shareholder Returns

The 30 largest U.S. publicly traded exploration and production companies cut capital expenditure 49% year-over-year in 2025, EY reported. Exploration spending fell 11% to $4.8 billion, representing just 3% of total capital expenditures across the group. Exxon Mobil, Chevron, BP, Shell and TotalEnergies have collectively spent more than $100 billion annually on dividends and buybacks over the past five years, nearly 80% of their earnings. Money spent on acquisitions fell 70% as the previous consolidation wave lost steam.

Production Efficiency Gains

Oil production by the group hit an all-time high in 2025 while revenue increased 7%, implying that spending less on drilling has hardly hurt their bottom lines. Shale oil companies are drilling longer, horizontal wells that sometimes extend three miles or more, allowing a single surface rig to tap more oil-bearing rock. Operators are increasingly deploying AI, machine learning and predictive analytics to maximize production efficiency, cut operating costs and extend the lifespan of oil and gas wells. Deep learning models process large 3D and 4D seismic datasets, combining them with historical drilling logs to map out high-permeability zones with higher precision.