Top oil firms spend more but get less crude

LONDON (Reuters) – The world’s three largest fully publicly traded oil firms are investing billions of dollars more, but there is little sign yet the extra spending is leading to higher production.

Exxon Mobil Corp., Royal Dutch Shell Plc and BP Plc posted falling 2007 output, even though they upped capital spending to over $60 billion and some expect a further rise this year.


The drop reflects the way higher oil prices reduce the amount of oil companies get under production-sharing agreements with governments, and declining supply from ageing fields in some regions like the North Sea.

“Production growth is still a real problem for the UK majors,” said Ivor Pether, who manages the equivalent of $1.4 billion at Royal London Asset Management, including BP and Shell shares.

Reuters