Lehman Survey Says E&P Spending Up
A Lehman Brothers survey of 398 companies finds spending for oil and gas exploration and production this year will increase 20 percent worldwide to $418 billion from $349 billion in 2007.
Among the key findings: substantial acceleration in North American planned spending. Expenditures are expected to rise 15 percent in the U.S., to $98 billion, and 11 percent in Canada, to $27.5 billion. That compares with a similar survey six months ago that found a 3.5 percent increase in use spending and a 12 percent drop in Canadian E&P expenditures.
Forecasts for higher commodity prices are driving the budget increases, and most of the survey participants expect the growth in E&P spending to increase next year as well.