Major Oil Companies to Reduce Capital Spending to $110.2 Billion in 2026 Amid Shift to High-Return Projects

In 2026, six major oil companies plan to decrease capital expenditures to approximately $110.2 billion from $114.1 billion in 2025, focusing on high-return upstream and LNG projects. The shift reflects a change in investment priorities, with less emphasis on carbon-reduction targets and more on core oil and gas businesses. The outlook includes stable spending among US exploration and production firms, steady refining sector expenditures, and resilient Canadian producer investments. Geopolitical tensions may influence capital allocation but are unlikely to alter overall spending behavior.

Published Mar 25, 2026

In 2026, six major integrated oil companies — ExxonMobil, Chevron, Shell, bp, Equinor, and TotalEnergies — are set to reduce capital expenditures to about $110.2 billion, down from $114.1 billion in 2025. The focus is shifting from broad expansion to high-return upstream and LNG projects.

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While maintaining net-zero commitments, investment priorities have altered, with reduced emphasis on medium-term carbon-reduction targets. US exploration and production firms will maintain spending around $53.9 billion, while Canadian producers project capital expenditures of C$23.6 billion.

Geopolitical tensions may influence capital allocation, particularly favoring North American LNG projects. However, overall spending behavior is expected to remain disciplined.