Oil, gas co's to hike new project spending – survey

NEW YORK, Dec 17 (Reuters) – Global spending on oil and gas exploration and production will rise 11 percent to $439 billion in 2010, reversing a drop in spending in 2009 as energy prices climb, according to a survey conducted by analysts at Barclays Capital.

The increase shown by the survey of 387 oil and gas producers follows the drop in spending of 15 percent in 2009 from the previous year, when oil prices reached a record high.

The Barclays’ analysts said spending in the United States is expected to rise by 12 percent to $79 billion, while Canadian budgets will rise by 23 percent to $23 billion.

Outside North America, spending is expected to rise 10 percent to $337 billion, largely driven by national oil companies, the analysts said.

Spending on exploration and production is heavily dependent on oil and gas prices, and is the key driver of revenues for oilfield services companies such as Schlumberger Ltd, Halliburton Co and Baker Hughes Inc.

Reuters