Looking to increase production and take advantage of high oil prices, analysts expect significant new capital investments from the ‘Big Oil’ companies in the coming year.
Spending from the world’s top publicly traded oil companies; ExxonMobil, Chevron, ConocoPhillips, Royal Dutch Shell, BP and Total; may reach record levels in 2011, says ING oil and gas analyst Jason Kenney, potentially reaching $128.54bn, a $10bn+ increase from 2010 spending levels. This amount could top the record $127bn spent by Big Oil in 2008.
Offshore drilling exploration will be a high priority as oil majors seek to broaden their resources and plan for the future. “In 2014, about 63% of the majors’ new source production is forecast to come from the offshore – shallow water and deepwater,” notes Rebecca Fitz of consulting group PFC Energy.
However, the consequences of the BP oil spill are being felt throughout the industry. Ramifications from the spill will prompt companies to pay more attention to safety and regulatory compliance procedures during offshore exploration and production. Associated costs, especially in North America, are predicted to rise as a result. Read more…