Data: 22% CapEx Increase in 2022 for North American Land Upstream Oil & Gas Producers

At ~43%, the Permian Basin leads forecasted 2022 capital spending by company and region.

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CALGARY, ALBERTA — Enverus Intelligence Research, a part of global energy data analytics and SaaS technology company Enverus, has released a new report analyzing who and where E&P capital budgets are being spent for 2022.

“We expect a 22 percent increase this year in Y/Y North American land upstream capital spending by oil and gas producers, driven by price inflation, the exhaustion of inventories of already drilled wells and some production growth,” said Mark Chapman, report author and senior vice president at Enverus Intelligence Research. 

Key takeaways from the report:

  • E&Ps are expected to increase 2022 North American land upstream capital expenditures by 22%.
  • Price inflation, the exhaustion of DUC inventories and production growth support the need for higher capital expenditures. Higher commodity priced enables operators to increase expenditures while maintaining free cash flow generation and sustainable reinvestment rates.
  • The Permian Basin accounts for the ~43% of 2022 North American land upstream capex.

Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters.

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