Big Oil To Spend Big In 2023. Are You?

• U.S. oil majors are significantly increasing capex in 2023.
• Higher cash flow and a positive earnings outlook give executives more space to increase capex budgets.
• The majority of energy companies have avoided spending big to expand production in the aftermath of the 2020 oil crisis.

The majority of energy companies have avoided spending big to expand production in the aftermath of the 2020 oil crisis, prioritizing returning more cash to shareholders in the form of dividends and share buybacks. Well, Biden might not fully get his wish but there are signs that companies are willing to spend more in the coming year(s) even as a raft of energy companies have announced major spending and capex hikes.