The U.S. exploration and production (E&P) sector is increasing its capital spending in 2022 for the first time in four years, while Canada is set to remain near multi-decades lows, according to Evercore ISI.

Global E&P Capex

Global E&P capital expenditures (capex) are poised to climb by 16% year/year (y/y) in 2022, extending 5.5% growth in 2021 “for the first globally coordinated upturn since 2018,” said Evercore senior analyst James West.

A “stronger rebound” in North America (NAM) is set to lead the way, with international capex trailing slightly. Overall, global spending should make a big splash, “recovering from the 24.3% collapse in 2020 to within 7% of 2019 levels.”

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