VIENNA, 14th May, 2025 (WAM) -- Capital spending for oil exploration and production (E&P) in Non-Declaration of Cooperation (non-DoC) countries increased in 2024 by about $3 billion, y-o-y, to reach $299 billion, according to OPEC Monthly Oil Market Report (MOMR) for May. However, the monthly reported noted that this spending is expected to decline by around 5%, y-o-y, in 2025 and further by about 2% in 2026 to around $277 bn.
In the US, it added, upstream E&P liquids investment in 2024 is estimated to have dropped by 8%, y-o-y, to about $125 bn. It is expected to drop further by around 9% and 7%, y-o-y, in 2025 and 2026, respectively.
The potential impact on production levels in 2025 and 2026 of the decline in upstream E&P oil investments will constitute a challenge, despite the industry's continued focus on efficiency and productivity improvements.