Big Oil Boosts Output to Record Highs in 2025 Despite 49% Capex Cut, EY Says

U.S. oil production among the 30 largest publicly traded exploration and production companies hit an all-time high in 2025 while capital expenditure fell 49% year over year, according to EY. Revenue rose 7%, underscoring that reduced drilling spending has not dented profitability. Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), Shell (NYSE:SHEL) and TotalEnergies (NYSE:TTE) have collectively spent more than $100 billion annually on dividends and buybacks over five years, about 80% of earnings. Exploration spending fell 11% to $4.8 billion, just 3% of total capex, while acquisition spending dropped 70% as consolidation slowed. Efficiency gains, longer horizontal wells and AI-driven drilling have sustained output, but reserve additions from discoveries fell 11%, failing to replace production for the first time in five years. Drilled but uncompleted well inventory fell to about 4,972 in May, the lowest since 2013 tracking began, per EIA. Natural gas reserves rose 14% year over year.