Supermajor Oil and Gas Production and CAPEX for Q1 2017

The supermajor oil and gas companies reached peak oil in 1973. This was a “political peak” caused by oil reserve nationalizations.

They reached a second peak in 1998 and oil production has declined by about 2 million barrels per day between the companies.

The companies reached peak gas in 2010.

After reaching peak oil and peak gas the companies ramped up capital spending, ultimately hitting a peak of capital spending of over $60 billion per quarter in 2013. Capital spending has crashed since 2013, reaching levels not seen for over two decades.

Meanwhile global oil production continues to grow, approaching the psychologically significant value of 100 million barrels of oil per day.

However on a per-capita basis global oil production peaked in 1979 and has been on a plateau since the 1980’s. If you adjusted peak oil per capita for the declining net energy returned on energy invested (EROEI) we would have reached a permanent peak of per capita oil production in the 1970s.

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