U.S. Energy Information Administration reported last week that financial results for 40 publicly traded U.S. oil exploration and production companies show capital expenditures in 2023Q1 increased from 2022Q4 even though cash from operations declined.
In 1Q lower crude oil prices reduced cash from operations for these companies; it declined 18 percent ($5.8 billion) compared with the previous quarter to $26.2 billion. At the same time, capital expenditures in 1Q were 12 percent higher ($1.8 billion) at $16.7 billion compared to the previous quarter.
Capital spending by E&P companies represents spending on property, plant and equipment used for producing oil. These 40 publicly traded companies account for 32 percent (about 4.0 million b/d) of all crude oil produced in the U.S. in 2023Q1. EIA added, “Our observations do not represent the entire sector because we exclude private companies, which do not publish financial reports.”