By OGJ editors
HOUSTON, Dec. 8 -- Worldwide exploration and production expenditures are expected to rise 4% to $144.3 billion in 2004 with a flat outlook anticipated for the US and Canada and a 6.1% gain expected elsewhere, according to the most recent E&P Spending Survey released Monday by Lehman Bros.
Based on a survey of 335 companies, Lehman said respondents' budgets are based on an average oil price forecast of $25.29/bbl and a natural gas (Henry Hub) price forecast of $4.17/Mcf.
Outside the US and Canada, E&P outlays by the 92 companies Lehman surveyed are expected to reach $98.1 billion for 2004, up from the $92.4 billion estimated for 2003.
In the US, the 270 companies surveyed are forecast to cut E&P spending by 0.1% to $32.6 billion, Lehman reported. The 2.5% increase in spending (to$19.9 billion) in 2004 estimated for the 259 independent E&P firms Lehman polled was offset by the 3.9% decline in spending by the 11 majors that were surveyed. Majors are expected to spend $12.7 billion in 2004.
In Canada, E&P expenditures for 2004 are estimated to decline by 0.2% to $13.6 billion by the 58 companies surveyed.
