Spending by Lower 48 oil and natural gas producers is set to rise by 19.4% next year to $83.4 billion from an expected $69.8 billion in 2021, according to new analysis by Rystad Energy. 

shale spending

Service price inflation is expected to account for $9.2 billion of the spending growth, with increased activity contributing $8.6 billion, said the Oslo-based consultancy. The spending increase should be partially offset by $4.2 billion in expected efficiency gains driven mainly by further adoption of simultaneous fracturing, aka simul-fracking, technology, researchers said. 

Total spending in 2022, despite growing year/year, would still be well below the $119.8 billion figure forecast by Rystad in November 2019 before the pandemic hit. Researchers also cautioned that the impacts of the Omicron...