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In Which Segment Has Shell’s Capital Expenditure Risen?

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Shell’s capex: Segmental trends

Royal Dutch Shell’s (RDS.A) capital expenditure (capex) is concentrated in its Upstream segment. In 3Q16, Shell incurred 59% capex in the Upstream segment, 24% in the Downstream segment, and 17% in the Integrated Gas segment.

In 3Q16, Shell’s capex fell 18% YoY (year-over-year) to $5.3 billion. The fall was majorly led by the Upstream segment, which witnessed a 25% YoY fall to $3 billion in 3Q16. The only segment not to see a fall was the Downstream segment, which saw a 9% rise YoY to $1.3 billion in 3Q16.

Comparatively, in 3Q16, Chevron (CVX) incurred capex of $5.2 billion, ~90% of which went toward its Upstream segment. BP’s (BP) organic capex for 3Q16 stood at $3.6 billion, compared to $4.3 billion in 3Q15. In 3Q16, ExxonMobil (XOM) incurred capex of $4.2 billion, compared to $7.7 billion in 3Q15.

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