Global oil exploration, production spending to hit record high in 2005 - study - Forbes.com
Global oil exploration, production spending to hit record high in 2005 - study - Forbes.com
10.10.2005, 11:58 AM
PARIS (AFX) - Global investment in oil exploration and production will increase by 13 pct this year to reach a record level of 170 bln usd, owing to expectations of a lasting increase in prices for consumers, according to a study from French oil institute IFP.
A further 8-10 pct spending rise is expected in 2006, the IFP forecast. In 2004, exploration and production spending rose 8.5 pct to 150 bln eur.
Since 2002, the price of oil has more than doubled from about 25 usd per barrel to over 60 usd per barrel today, but investment has lagged behind, IFP said.
The institute cited ownership restrictions in oil-producing countries such as Russia and some Gulf states, higher taxation and a skill shortage as reasons for the delay between higher prices and investment.
Oil services companies specialising in upstream development operations such as geophysical analysis, drilling and offshore oil rig construction are set to benefit strongly from this spending increase, seen up 15 pct in 2005 for these activities, IFP said.
10.10.2005, 11:58 AM
PARIS (AFX) - Global investment in oil exploration and production will increase by 13 pct this year to reach a record level of 170 bln usd, owing to expectations of a lasting increase in prices for consumers, according to a study from French oil institute IFP.
A further 8-10 pct spending rise is expected in 2006, the IFP forecast. In 2004, exploration and production spending rose 8.5 pct to 150 bln eur.
Since 2002, the price of oil has more than doubled from about 25 usd per barrel to over 60 usd per barrel today, but investment has lagged behind, IFP said.
The institute cited ownership restrictions in oil-producing countries such as Russia and some Gulf states, higher taxation and a skill shortage as reasons for the delay between higher prices and investment.
Oil services companies specialising in upstream development operations such as geophysical analysis, drilling and offshore oil rig construction are set to benefit strongly from this spending increase, seen up 15 pct in 2005 for these activities, IFP said.
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