The oil industry is extremely capital-intensive. Oil wells don't produce forever. Many see their output steadily declining before running dry. Producers must stay ahead of this decline by reinvesting capital into new wells and related infrastructure.

Some producers earn higher returns on their reinvested capital dollars than rivals. Here's a look at the return on invested capital (ROIC) among some of the largest integrated oil companies using data from New Constructs.

ROIC helps measure the profitability of a company's investments as a percentage of its debt and equity capital. New Construct's ROIC formula is net operating profit after taxes (NOPAT) divided by average invested capital.

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Source Fool.com