Barclays sees drop in oil, gas spending in 2009

NEW YORK (Reuters) – Global spending on oil and gas exploration and production will shrink 12 percent to $400 billion in 2009 as the steep slide in energy prices and tight credit markets reverse a six-year trend of rising budgets, analysts at Barclays Capital said on Friday.

Spending in the United States is expected to show the sharpest drop, falling 26 percent to $79 billion from the 2008 mark of $106 billion, Barclays analysts James Crandell and James West said in their semiannual report based on a survey of oil and gas companies.

Overall, companies’ Canadian spending budgets will fall 23 percent to $22 billion, while outside North America, the drop is expected to be a more moderate 6 percent to $300 billion.

Reuters