Economic research firm IHS is projecting that oil and gas companies will increase spending on exploration and production by twelve percent this year to just over $400 billion. That follows a nineteen percent spending increase in twenty-ten.
“Twelve percent rise is still, in total, and this is for a very large group of oil and gas companies, is still very respectable, very strong increase in spending.”
Analyst Aliza Dutt says the forecast for this year takes into account more volatile conditions in the global economy, as well as slower growth in the U.S..
IHS cites Houston-based Marathon Oil as one of the most aggressive spenders. The company is ramping up spending by 37% percent as it drills on expanded U.S. acreage in Oklahoma’s Anadarko Woodford play, the Niobrara play in Colorado and Wyoming, and the Bakken formation in North Dakota.