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ENERGY NEWS
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ENERGY REVIEW
The US shale industry is set to increase capital spending next year, and oil and gas production is expected to grow amid higher commodity prices and the rebound in energy demand. The largest US oil and gas firms announced at the end of 2021 their budget plans for 2022, as well as new targets and initiatives to reduce emissions from operations. By Tsvetana Paraskova
At the same time, the US oil and gas industry continued to voice disappointment with the Biden Administration’s policies toward the sector, while US officials have been openly calling on OPEC and OPEC+ to increase oil production to help relieve the upward pressure on US petrol prices, which hit the highest in seven years in October and were close to the highest ever for the Thanksgiving holiday at the end of November.
www.ogv.energy I January 2022
US shale to raise Capex in 2022 The US shale patch is expected to raise combined capital expenditure budgets by 19.4% in 2022, from an expected US$69.8 billion in 2021 to US$83.4 billion next year, Rystad Energy said in a report in early December. The capital spending in 2022 is set to be at the highest level since the onset of the Covid-19 pandemic, signalling
the industry’s emergence from a prolonged period of uncertainty and volatility, Rystad Energy reckons. This year, spending has increased by 16% compared to the pandemic-hit 2020, mostly thanks to an uptick in activity from private exploration and production (E&P) companies, the energy research and business intelligence company said.
