HOUSTON -- Exploration and production spending is expected to go up 7% this year to $326 billion, reports IHS Herold. This total excludes acquisition spending.
“This rise in spending is a sharp contrast to the expected 23% decline in upstream spending in 2009 amid the global recession and tight markets,” said Aliza Fan Dutt, vice president and senior equity analyst at IHS Herold. “While the financial and energy markets have shown marked improvement from last year’s environment, oil and gas companies are still cautiously optimistic when setting their 2010 capital investment plans.”
The report indicates that 80% of the companies involved expect to increase capex this year over 2009.