Oil majors to keep tight rein on capex in 2017

US and European oil and gas majors intend to keep a lid on capital spending in 2017 as oil prices are expected to remain low. This could have consequences for prices and the companies’ market shares
By Peter Stewart 2 November 2016
Shell’s capex in 2016 is expected to be below the level of Shell and BG Group’s combined capex in 2014. (BG Group)

BP and Shell outlined their spending plans for 2017 while announcing their Q3 2016 results earlier this week.

Despite an 18% rise in net profits for Q3, Shell said capital investment in 2017 would be at the bottom of the guidance range of $25-30 billion. Shell’s capex is expected to be $29 billion in 2016, around $18 billion below the level of Shell and BG Group’s combined capex in 2014 – before the two companies merged.

BP said it expects 2016 capex to be around $16 billion,...

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