Abu Dhabi: Capital spending for oil exploration and production in Non-Declaration of Cooperation (non-DoC) countries saw an increase of approximately $3 billion year-on-year, reaching a total of $299 billion in 2024. This information was highlighted in the OPEC Monthly Oil Market Report (MOMR) for May.
According to Emirates News Agency, the report also projected a decline in this spending by around 5% year-on-year in 2025, with a further decrease of about 2% in 2026, bringing the total down to approximately $277 billion. The report sheds light on the potential challenges posed by these reductions in investment, as they may impact production levels despite ongoing efforts to enhance efficiency and productivity within the industry.
In the United States, the report noted a significant drop in upstream exploration and production liquids investment. In 2024, this investment is estimated to have decreased by 8% year-on-year to around $125 billion. The trend is expected to continue with a further decline of approximately 9% and 7% year-on-year in 2025 and 2026, respectively.
The anticipated reduction in upstream exploration and production oil investments poses a challenge for the industry, which must balance declining investments with the need to maintain production levels. The focus remains on efficiency and productivity improvements as the sector navigates these potential hurdles in the coming years.