The study analyzes US upstream spending and performance data for the largest 50 companies based on 2012 end-of-year oil and gas reserve estimates.
Total capital expenditures for the 50 companies reached $186 bn – the most in the study’s history. Largely due to increased tight oil and liquids activity, exploration spending reached $26 bn and development spending soared to $103 bn.
The increased exploration and development spend we’re seeing in this year’s study speaks to the incredible opportunity unfolding in tight oil from shale formations and the high cost of developing these unconventional resources. Everyone wants in and they are paying a premium to play.