Global capital spending jumps, says IHS Herold report

Offshore staff

NORWALK, Connecticut – US and Latin American acquisition moves drove the total global upstream capital spending for 221 oil and gas companies up by 47% to $558 billion in 2010 says an IHS report.

The “IHS Herold 2011 Global Upstream Performance Review” noted that the significant increase in capital spending was primarily due to a seven-fold increase in acquisition spending to $125 billion, which is up from nearly $18 billion in 2009. Most of this spending occurred in the U.S. and in South and Central America, which each saw total upstream spending increases of approximately 130% to $195 billion and $91 billion, respectively.

Worldwide oil and gas reserves grew by 3% in 2010 to 286 billion boe, which matched the growth rate for 2009, while U.S. reserves increased 10% to 51 billion boe in 2010. Oil and gas production grew 5%, with gas output growing slightly faster than oil, noted the IHS Herold Global Upstream Performance Review.

According to the IHS Herold M&A database, approximately 10% of worldwide proved acquisition spending in 2010 was targeted toward deepwater reserves, while another 11% was devoted to proved unconventional reserves. However, the lion’s share of spending in both of these areas is still highly focused on non-proven resources.

Reserve replacement and finding and development costs rose by approximately 50% in 2010 to $16.45/boe and $18.25/boe, respectively, primarily due to the surge in unproved acreage purchases, which have no reserve additions associated with them. Reserve replacement and finding and development replacement rates softened in 2010, but remained well above full replacement levels at 160% and 128% of production, respectively. Reserve replacement through the drill-bit was particularly strong in the U.S., coming in at 224% of production in 2010.

12/05/2011

Related Articles

BSEE, USGC respond to Energy XXI platform fire

Jan 23, 2015

The Bureau of Safety and Environmental Enforcement (BSEE) is responding to a damaged unmanned platform in South Timbalier block 27 in the Gulf of Mexico.

OneSubsea announces Jack/St. Malo involvement

Jan 23, 2015 Chevron Corp. recently achieved first oil from the Jack and St. Malo fields in the Gulf of Mexico. OneSubsea, a Cameron and Schlumberger company, supplied the subsea production and processing syste...

Hess orders Stampede umbilicals from Oceaneering

Jan 22, 2015

Hess Corp. (NYSE:HES) has contracted Oceaneering International Inc. (NYSE:OII) to supply umbilicals and umbilical distribution hardware to the Stampede project. 

UH to lead offshore energy research center

Jan 20, 2015

The University of Houston will lead a national research center for subsea engineering and other offshore energy development issues.

Noble Energy’s Madison GoM exploration well comes up dry

Jan 20, 2015

The Madison exploration well in the Gulf of Mexico did not encounter commercial hydrocarbons. 

Trending News

Analysis confirms prospectivity in Drombeg offshore Ireland

Mar 5, 2015

Providence Resources has provided an update on the review of its Lower Cretaceous Drombeg prospect in the southern Porcupine basin offshore southwest Ireland.

Major projects lift ExxonMobil’s global output

Mar 5, 2015

ExxonMobil expects to increase its global production by 2% this year to more than 4.1 MMboe/d, driven by 7% liquids growth.

Eirik Raude prepares to spud Zebedee offshore Falklands

Mar 5, 2015

The semisubmersible Eirik Raude has arrived in Stanley and will soon start a six-well campaign offshore the Falkland Islands.

Drilling under way at Morkel in North Sea

Mar 5, 2015

The semisubmersible Bredford Dolphin has spudded a well for Lundin Norway on the Morkel prospect in the Norwegian North Sea.

SSTB 2015: Aker Solutions officials describe capabilities of workover riser connection

Mar 5, 2015

Aker Solutions officials have been describing the capabilities of riserLOCK 7.10 workover riser connector at the Subsea Tieback Forum & Exhibition being held at the Ernest N. Morial Convention Center in New Orleans. 

  Offshore
Digital Magazine
Look Inside
Cover
Current Issue

Oil & Gas Jobs

Search More Job Listings >>