Oil Cos Get Ready for 2006 Capital Spending Binge

Despite surging energy prices over the past four years, the oil industry has been cautious about ramping up its exploration and production expenditures for fear of pushing its luck.

Many companies are now poised to gleefully take the plunge.

In an indication that producers finally have become willing to make long-term bets on high energy prices, oil and natural gas companies are planning massive increases in their 2006 capital spending budgets in order to replace dwindling reserves and grow production.
Schlumberger