Posted on 12/09/2013 10:25:18 AM PST by thackney
Oil and gas companies will spend more money in 2014 than ever to explore for and produce oil and gas, with $723 billion expected to fund the global effort, according to projections from Barclays.
The financial services firm projected that spending on exploration and production will jump 6.1 percent from the 2013 level of $682 billion, driven by high oil prices and increased success worldwide.
“Despite fears of capital spending peaking, (capital expenditures) will reach yet another record this year, surpassing the $700 billion mark for the first time,” said James West, lead oil services and drilling analyst for Barclays.
Among the trends driving growth are rapid expansions of spending expected in the United States, the Middle East and Latin America. In the United States, oil and gas companies have identified so many potential well sites that they could be busy producing from those known resources for decades, West said.
“We believe well inventories are at the highest level ever for companies to drill in the United States,” he said.
Although spending on U.S. exploration and production grew just 2 percent in 2013, it likely will surge next year as major companies focus less on international opportunities and pour more money into domestic plays, West said.
Spending on exploration and production in the Middle East is expected to jump 14 percent, largely because of expanded efforts in Saudi Arabia, West said.
Yep! And I plan on putting just a wee little tiny smidgeon of that in my bank account....LOL
“...The harder we make it to compete in the US, the more the investment and jobs goes to other locations....”
I certainly agree, thackney. That statement holds true for most industries that have left these shores because on the “walking democrats” that inhabit DC.
did you see anywhere as to what percent of that 723 billion in oil/gas investment went to the USA?
Barclays forecast an increase of more than 7 percent in E&P spending in North America in 2014, compared with a 2 percent increase in 2013, based on a survey of more than 300 oil and gas companies conducted last month.
Spending is set to increase in North America after two years of tepid growth, when weak prices in the United States made drilling for natural gas uneconomical in many onshore fields.
E&P spending outside North America is likely to increase 6 percent to a record $524 billion in 2014, a smaller increase than the 10 percent rise this year, the bank said.
So 723 - 524 = $199 Billion in North America. I haven’t found it broken down by country.
They better not kill a bird or they’ll lose half that in fines.
I attended the Spears meeting in Houston last Friday. While demand will remain flat in the US, production will continue to increase due to declining imports, something that has been going on since 2006.
I would say it the otherway around. Because of increased domestic production, we are importing less.
That’s exactly what I said.
Arrgg! said = meant.
While demand will remain flat in the US, production will continue to increase due to declining imports, something that has been going on since 2006.
...........
I understand what you intended to say....but that’s not what you actually said. You intended to say something like “production will continue to increase due to better/faster/smarter/cheaper fracking methods and continuing high oil prices. Meanwhile actual demand in the USA for oil has been declining since 2006. The result has been that US imports of oil have been steadily declining from their highs of 60% of US oil consumption to current (roughly)40% of US oil consumption. This trend has been ongoing since 2006.”
So 723 - 524 = $199 Billion in North America. I haven’t found it broken down by country.
........
Now do you know how to make that real compared to what? That is, what was oil/gas investment in the USA in 2005—the year before fracking started to register real data.
I think the decline has tapered off. Summer 2012 and 2013 had essentially the same peak. The last three recorded months (July, August & September) are each higher than the year before. The yearly cycle will need to run longer before it can be clearly shown.
click chart for data source
I don’t have access to those data sources. But for recent comparison, that link states:
Barclays forecast an increase of more than 7 percent in E&P spending in North America in 2014, compared with a 2 percent increase in 2013.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.