Global Oil, Gas Upstream Capex +11% In 2010 -Survey
17.12.09, 16:28 Uhr
LONDON -(Dow Jones)- Total global spending on oil and gas exploration and production in 2010 should rebound significantly, rising 11% from the previous year to $439 billion, but will remain below its 2008 level of around $465 billion, according to an industry survey conducted by Barclays Capital published Thursday.
Spending in North America is expected to show the sharpest recovery, having experienced the biggest slump of more than 30% this year due to the collapse in energy prices and the difficult credit markets, the survey said.
U.S. spending will rise 12% to $79 billion in 2010, it said. "Gains are driven by increased spending in the newer shale [gas] plays, such as the Haynesville and Marcellus," the survey said.
"The additional production that is anticipated as a result of these increases could put U.S. natural gas prices under pressure and may lead to another drilling downturn--perhaps as early as the second half of 2010," it added.
The bulk of the U.S. spending boost will come from independents like Chesapeake Energy Corp. (CHK) or Devon Energy Corp. (DVN), while major companies like ConocoPhillips (COP) and Royal Dutch Shell PLC (RDSB.LN) will actually reduce spending, the survey found.
Canadian exploration and production capital expenditure is forecast to rise 23% on year, following a sharp pullback in investment in oil sands projects this year, the survey said. Taking into account currency effects, the rise in spending in the U.S. and Canada is similar, it said.
Outside North America, state-owned oil companies are the main drivers of growth, increasing their spending 15% in 2010, compared to an increase of just 1% among the six major listed oil companies. Total international spending is forecast to increase 10% to $337 billion.
"Indications are that Russia-based firms could be among the more aggressive spenders in 2010," with an overall increase of 20% among companies like OAO Gazprom (GAZP.RS), OAO Rosneft (ROSN.RS) and TNK-BP Ltd. (TNBP.RS), the survey said. Russian spending will still not surpass 2008 levels, having fallen more than 30% in 2009.
An increase of 9% in capital expenditure in Latin America is driven almost entirely by Petroleo Brasileiro (PBR) ramping up development of the huge offshore oil fields it has discovered.
About 45% of the survey's 387 respondents anticipate devoting a greater share of their spending to exploration in 2010, compared to 2009.
Company Web site: www.barclayscapital.com
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