Oil companies are learning to do more with less

Pisani's market opens: Oil on the downside

The first wave of mid-sized oil and gas exploration and production companies has reported, and the results are more encouraging than many had anticipated. Production levels remain relatively high — in most cases at or near year-ago levels — yet capital expenditures are way down.

This means companies are employing new technologies and learning to produce more with less. Capital efficiency is increasing dramatically.

Read More Frackers change methods in 'imploding' oil market

Look at Marathon Oil, out last night after the bell. The loss of 20 cents was far less than the 40-cents expected loss. Sales volumes were higher than expected. Production expenses came in lower than expected. Capital expenditures for 2015 are being cut more than estimated, and projected capital expenditures for 2016 are also being slashed further.

Devon Energy also reported a sizable earnings beat (76 cents vs. 52 cents consensus), with production higher than expected, and spending lower than expected. For 2016, it looks like capital expenditures will be much lower, with production increasing in the low single-digits.

You see? Production steady, but spending much lower. Earnings somewhat better than expected. Doing more with less!