Rigzone Staff
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Friday, June 18, 2010
U.S. exploration and production (E&P) expenditures are now expected to rise at a faster rate than previous forecast, with an 18 percent spending increase to $85 billion among 220 companies surveyed, according to the mid-year update to the Barclays Capital's Original E&P Spending Survey. In its December 2009 survey, Barclays originally estimated that U.S. E&P expenditures would rise by 12 percent (emphasis mine). Barclays attributed the increase in U.S. E&P spending to higher oil price expectations, success in drilling shale plays, drilling to hold leases and hedging, which have more than offset lower natural gas price expectations. Canadian E&P expenditures now are expected to rise 28 percent to $27 billion in 2010 (emphasis mine) for the 131 companies Barclay surveyed, compared to a 23 percent increase forecast in the December survey. However, Barclays believes this increase is primarily due to the strengthening of the Canadian dollar in 2010 versus 2009. In Canadian dollar terms, Barclays estimates that E&P capital spending has risen by about 17 percent, generally in-line with the rate of U.S. E&P spending growth. |
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