Oil & Energy
Big Oil Firms Now Ready To Boost Spending
All five oil and gas supermajors are looking to boost capital spending in 2022.
Despite some of the big oil timesreporting strongest earnings in years and record cash flows, capital discipline remains a key pillar of Exxon, Chevron, Shell, BP, and TotalEnergies are set to increase their combined capex programs in 2022 by at least $12 billion.
All five international oil and gas majors expect to boost their capital spending next year, although capital discipline and higher returns to shareholders will remain the top priorities for ExxonMobil, Chevron, Shell, BP, and TotalEnergies.
Those oil majors—although Shell, BP, and TotalEnergies now prefer to be known as energy companies—have reported strong cash flows and earnings for the past two quarters as significantly higher oil and gas prices compared to last year boosted profits.
Despite some of Big Oil reporting strongest earnings in years and record cash flows, capital discipline remains a key pillar of all future strategies. Increased capex plans for 2022 and onwards are not surprising considering the fact that in 2020, all firms slashed as early as in March their capital allocation guidance in response to the crash in prices in the pandemic. Now budgets are slightly higher than in 2021 and incremental investments are specifically going to core growth oil and gas projects with low breakevens and high returns and to low-carbon energy.
Discipline Continues To Guide Spending
Despite $80 oil, no one is splurging on investment these days, unlike in the years prior to the 2015 price crash, when companies were spending as if oil would stay at $100 a barrel forever.
Sure, capex for 2022 is higher at all five majors compared to 2021 and 2020, but it’s nowhere near 2014 levels. Capital discipline is still the keyword in all earnings releases and calls, where higher dividends and share buybacks take precedence when it comes to allocating this year’s record cash flows.
Exxon, Chevron, Shell, BP, and TotalEnergies are set to increase their combined capex programs in 2022 by at least $12 billion, according to estimates from Energy Intelligence based on company reports and earnings calls. The increases are much smaller than the surge in the cash flow and earnings this year as the majors are set to primarily use the windfall to reduce debt and increase shareholder returns by raising dividends and repurchasing stock.
Higher Low-Carbon Spending
The five largest international firms are also raising capital spending on low-carbon energy, including the U.S. supermajors who differ from their European competitors in strategy by not being willing to invest in any solar and wind power generation. Instead, Exxon and Chevron plan to focus on renewable fuels and carbon capture and storage (CCS), both to cut their own carbon footprint and to develop in partnership regional CCS hubs in heavily industrialized areas.
Chevron, for example, said in September that it would triple its planned capital investment in lower carbon businesses to $10 billion through 2028, including $2 billion to lower the carbon intensity of its operations. Exxon said last week it expects its cumulative low-carbon investments to be around $15 billion from 2022 through 2027, a fourfold increase in a plan to raise total capex by at least $4 billion in 2022 compared to 2021.
Exxon Plans Highest Capex Hike
In reporting blockbuster earnings for Q3 last week, ExxonMobil’s said its 2021 capital program is expected to be near the low end of the $16 billion to $19 billion range. In the fourth quarter, the board of directors will formally approve the corporate plan, with capital spending anticipated to be in the range of $20 billion to $25 billion annually. The higher investment is underpinned by further appraisals and developments in Guyana and Brazil, Kathy Mikells, Senior Vice President and Chief Financial Officer, said on the Q3 earnings call last week. The Permian remains a top priority as well, where “we’re seeing that work that we’re doing out in the Permian deliver the same value for a lot less spend,” CEO Darren Woods said.
The other majors also plan higher capex in coming years, although less than Exxon’s increase in spending.
Shell, for example, said in its strategy day in February that it would boost its cash capex to $23 billion-$27 billion per year, from $19-22 billion annually, when it brings net debt down to below $65 billion. The company did that in Q3, with net debt down by $8.2 billion to $57.5 billion, thanks to improved macroeconomic environment and commodity derivatives inflows.
Shell’s higher capex was contingent on reducing debt and increasing shareholder returns first.
TotalEnergies, which sees net investments in 2021 at $13 billion—including $3 billion on renewables and electricity—expects to keep investment discipline, with its capex program at $13-15 billion per year for 2022-2025, the French firm said in September in its strategy presentation.
Chevron, which lowered 2021 capex guidance to $12 billion-$13 billion, has guidance of $15 billion to $17 billion for 2022 through 2025, CFO Pierre Breber said on the Q3 earnings call on Friday after Chevron reported its biggest quarterly profit since 2013 and its highest free cash flow on record.
“We do expect higher capex in the fourth quarter and next year,” Breber said.
Despite higher spending guidance, Big Oil continues to be conservative in capital allocation now that shareholders want returns and ESG investors want accountability.
“US$80/bbl oil gives companies options, and a chance to do it all – return cash to shareholders, maintain oil and gas investment, and accelerate investment in low carbon opportunities. The current upcycle presents a golden opportunity to reposition for a very different future,” Kavita Jadhav, research director at Wood Mackenzie, said last month.
Paraskova Reports for Oilprice.com
Oil & Energy
The Tofu Brine Battery That Could End the Lithium Era
Researchers in Hong Kong and China have developed a new form of battery that is more eco-friendly and longer lasting than lithium ion batteries – and it runs on tofu brine. The new water battery is still in research phases, but if the technology proves to be scalable enough to hit commercial markets, it could be a game-changer for the energy and tech sectors.
“Compared with current aqueous battery systems … our system delivers exceptional long-term cycling stability and environmental friendliness under neutral conditions,” the research team, composed of scientists from the City University of Hong Kong and Southern University of Science and Technology in Shenzhen, Guangdong, said in a paper published this month in Nature Communications.
The researchers found that their battery model can be recharged over 120,000 times. “At over a hundred thousand cycles, this could mean a single water-based battery could last at least a decade or so,” states a recent report on the breakthrough from Interesting Engineering. “For applications like grid storage (solar farms, wind balancing), that’s extremely valuable,” the article went on to say.
This kind of lifespan would represent a drastic improvement over the battery technologies that dominate today’s market. Lithium-ion batteries degrade after between 1,000 and 3,000 charge cycles. This could prove revolutionary, as finding an alternative to lithium-ion batteries to power rechargeable devices is a major priority for Big Tech and the global energy sector.
Moreover, these tofu-brine batteries could prove safer and more environmentally friendly than lithium-ion batteries. According to the study authors, the full cells are environmentally benign and nontoxic and can be directly discarded to environments according to various standards.” Water based (also called aqueous) batteries can also potentially be cheap to produce as they rely on ingredients that are less rare in addition to being less hazardous.
Lithium is environmentally harmful to extract, prone to fires, and its supply chains are geopolitically fraught. Currently, China alone controls half of the global lithium market, and is rapidly increasing its stake. In 2024, more than eight in ten battery cells on the planet were made in China. This means that finding a battery model that can compete with lithium-ion batteries in applications like grid-scale energy storage and electric vehicles would have revolutionary implications for global markets.
Researchers around the world have been racing to develop battery models that could diversify the market and make it more competitive and resilient. These models range widely in size, components, and application, with models currently under development for next-gen sodium-ion batteries, quantum batteries, nuclear batteries, and even sand and dirt batteries.
Of course, the irony is that the leading alternatives to lithium-ion batteries are also being developed in Chinese labs. If this new tofu-brine battery proves scalable and applicable outside of a laboratory environment, it could just be another step toward Beijing’s goal of near-total domination of clean energy technology value chains and status as the world’s first and premiere ‘electro-state.’
China’s extreme advantage in global battery making gives it a major point of leverage in global economies as the world continues to electrify at a rapid pace. It is estimated that European demand for lithium in batteries will reach kilo tonnes (thousands of tonnes) of Lithium Carbonate Equivalent by next year, and North American demand will reach 250 kit LCE. it’s all but certain that the vast majority of that demand will be supplied by China.
Other nations are aware of the risk of this dependency, and are taking pains to protect and promote domestic battery manufacturing, but these efforts may be too little, too late. “For globally competitive battery manufacturing industries to emerge outside of Asia over the next ten years, companies will need to do far more than ensure regulatory compliance,” summarizes a McKinsey & Company report released in January. “Challenges will need to be overcome on multiple fronts spanning supply chains, talent management, operations and technology.”
By: Haley Zaremba
Oil & Energy
REA TO Spend N100bn On Hybrid Mini-grids For Govt Agencies In 2026
The Rural Electrification Agency (REA) says it will spend N100 billion in 2026 to deploy hybrid mini-grids for government agencies within and outside Abuja.
The Managing Directors, REA, Abba Aliyu, disclosed this while addressing newsmen on the sidelines of the 2026 budget defence session
The approved funds form part of the National Public Sector Solarisation programme, a component of the agency’s broader N170 billion budget proposal for 2026.
The initiative is designed to improve electricity reliability for public institutions while reducing operational costs and easing pressure on the national grid.
Aliyu explained that the agency’s total proposed budget for 2026 stands at N170 billion, with N100 billion of the amount dedicated specifically to the solarisation initiative targeting government agencies.
He said the hybrid mini-grid systems combine solar power with complementary energy sources to ensure an uninterrupted electricity supply.
“The total budget size for 2026 operations is N170 billion, out of which N100 billion had been approved for National Public Sector Solarisation.
Aliyu cited the National Hospital in Abuja as an example where similar infrastructure had been deployed to ensure stable power and cut operational expenses.He added that beyond the Solarisation
Recall that earlier in February 2026, REA signed a Memorandum of Understanding with the Economic Community of West African States (ECOWAS) to deploy solar power systems to 15 public institutions across Nigeria.
The project will be implemented under the Regional Off-Grid Electricity Access Project (ROGEAP), a World Bank-supported initiative aimed at expanding off-grid electricity access across West Africa and the Sahel.
ECOWAS will provide a $700,000 grant to fund the installation of solar photovoltaic systems in selected rural health centres and schools in the Federal Capital Territory, Niger, and Nasarawa States.
Oil & Energy
PIA: TotalEnergies Transfers OLO Oilfield HCDT Obligation To Aradel ……Says HCDT Enabled Completion of 100 Projects In 2 years
In his remarks, the Community Affairs Manager, Aradel Holdings Plc, Blessyn Okpowo, affirmed the company’s commitment to honouring all PIA obligations and continuing Total Energies’ community engagement approach.“We want to say that in line with the PIA, we will honour commitments and duties required of the settlor and we want to work very smoothly with the way TotalEnergies has worked with them,” he stated.
He recognised the Commission’s role in approving the Community Development Plan (CDP) before project start, underscoring regulatory excellence.The parties noted that between 2023 and 2025, the trust has enabled the completion of more than 100 community projects, spanning water supply, electricity, road infrastructure, education, and healthcare with a further 40 projects currently ongoing.
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