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How Will Shell’s Capital Expenditure Look by 2020?

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Shell’s capex

As a part of its forward strategy, Royal Dutch Shell (RDS.A) is planning to reduce its capital expenditure (or capex) by 35% over 2014 to $29 billion in 2016.

Going forward, from 2017–2020, Shell plans to spend in the range of $25 billion–$30 billion, with the option of reducing this amount to the lower end if the situation warrants it.

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Peers’ capex

In 2016, BP (BP) and Chevron (CVX) plan to reduce their capex to the ranges of $15 billion–$17 billion and $25 billion–$28 billion, respectively.

If you’re looking for exposure to integrated energy sector stocks, you could consider the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The ETF has ~5% exposure to the sector.

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