U.S. Energy Information Administration (EIA) has released its Financial Review of the Global Oil and Natural Gas Industry: 2023, indicating capital expenditure increased 10 percent to $390 billion in 2023.
Upstream Companies
Cash from operations decreased by 21 percent, and capital expenditure increased by 10 percent from 2022 to 2023.
Energy companies decreased net debt by $39 billion and allocated $89 billion to net share repurchases in 2023.
Cash from operations decreased to $678 billion, and capital expenditure increased to $390 billion in 2023.
Return on equity for the energy companies decreased to 17 percent, and for U.S. manufacturing companies it decreased to 14 percent in 2023.
The long-term debt-to-equity ratio decreased to 41 percent for the energy companies and increased to 53 percent for U.S. manufacturing companies.
Brent crude oil daily prices averaged $82.18 per barrel in 2023—17 percent lower than in 2022
Among the upstream companies, combined petroleum liquids production increased 4 percent in 2023 from 2022, and natural gas production decreased less than 1 percent.
Cash from operations decreased to $678 billion in 2023—21 percent lower in real terms than in 2022.
Exploration and development spending was 27 percent higher in real terms in 2023 from 2022.
The energy companies reduced net debt by $38 billion and allocated $89 billion to net share repurchases in 2023.
Refiners’ earnings per barrel processed decreased on average in all regions in 2023.
Capacity utilization among refiners in Asia Pacific increased substantially in 2023.
The upstream analysis focuses on the financial and operating trends of 175 global oil and natural gas companies (called the companies or the energy companies), and the downstream analysis focuses on 42 companies (called the refiners). The data come from the public financial statements each company publishes, which a data service (Evaluate Energy) aggregates for ease of data analysis.
About 61 percent of the companies produced less than 50,000 barrels per day in 2023.
Petroleum liquids production increased, and natural gas production decreased slightly from 2022 to 2023.
After net purchases and production, the companies added 2 billion barrels of oil equivalent to proved reserves in 2023.
Proved reserves increased the most in Canada and decreased the most in the Middle East and Africa from 2022 to 2023.
Proved reserve additions for petroleum liquids and natural gas totaled 18 billion barrels in 2023.
Excluding revisions, the companies replaced 70 percent of their production through organic proved reserve additions.
Acquisition costs rose by 43 percent from 2022 to 2023 and represented a higher share of overall upstream costs.
Exploration and development spending increased 23 percent from 2022 to 2023.
Finding plus lifting costs increased 9 percent from 2022 to 2023.
Downstream Companies
Among the refining companies, global refining distillation capacity decreased slightly from 2022 to 2023.
Capacity utilization for these refining companies averaged 87 percent, and North American refiners had the highest capacity utilization in 2023.
Among the refining companies, earnings per barrel processed decreased on average in all regions from 2022 to 2023.
GreentechLead.com News Desk