Two of the biggest oil majors spent March 5 trying to outdo each other on who could commit more money to exploration and production, with American shale being a major focus. Exxon announced that it expects to have capital expenditures of $30 billion this year and $33-35 billion next year, after spending $26 billion last year. Chevron expects to spend $19 to $22 billion per year in capital expenditures for the next few years, including $1.6 in shale fields outside the Permian.
All these expenditures come as America is set to surpass Saudi Arabia in a remarkable milestone, becoming the world’s largest exporter of oil, natural gas liquids, and petroleum products. Even as the shale boom took hold, very few people thought America would ever become a significant exporter. America would be doing well just to cut its own imports.
Exports of refined products grew quietly and then in 2015 Congress lifted the ban on crude oil exports that was put in place during the 1970s oil crisis. As a result, America is now exporting about 3 million barrels per day of crude oil and about 5 million barrels per day of natural gas liquids and petroleum products. Meanwhile, Saudi Arabia is exporting about 7 million barrels of crude and 2 million barrels of products. America may never catch Saudi Arabia in raw crude exports, but we are expected to soon catch them in total exports.
Cimmaron Land is helping companies lease acreage in the Marcellus and Utica plays, and if you want in you can call us at (412) 212-7517 for more information.