WorldOil

United States: S&P Spending

Citi Investment Research (CIR), a division of Citigroup Global Markets Inc., published its 26th annual E&P Spending Survey on December 18, 2007. The 39-page report includes responses from 247 oil and gas companies (up from 237 in 2006) and analyzes spending for 2007 and plans for 2008, focusing on the US, Canada and regions Outside North America (ONA). The data includes 52 tables and figures plus CIR’s comments, survey highlights, the survey’s process and results, and company observations. The authors say that the survey forecasts E&P expenditures to grow 9.3% to $354.6 billion from $324.4 billion in 2007. A pattern of overspending initial budgets continued for the eighth consecutive year with moderating cost inflation likely to support overspending in 2008. North American spending is expected to increase almost 4% to $114.2 billion. This increase will be led by the US with a 6.5% increase to $86.5 billion.