E&D outlays, revenues hit 5-year high in '96. (exploration and development in the petroleum industry)

Worldwide exploration and development spending and revenues reached 5-year highs in 1996.

That's the main finding to be gleaned from Arthur Andersen LLP's 1997 Oil & Gas Reserves Disclosure survey (OGJ, Sept. 1, 1997, Newsletter).

"The global oil and gas industry is now realizing a return on its years of investment in productivity improvements and new technologies, sweetened in 1996 by stable, relatively strong prices," said Arthur Andersen Managing Director Victor Burk.

"The significant increase in capital spending in 1996--which is continuing in 1997--is an indicator of the renewed commitment by both majors and independents to the exploration and production business, both in the U.S. and abroad."

Spending

Expenditures by publicly held oil and gas companies increased to $65.9 billion in 1996 from $57.7 billion in 1995. Outside the U.S., 1996 spending rose to $38.7 billion from $35.3 billion.

U.S. upstream spending climbed to $27.2 billion in 1996 from $22.4 billion in 1995--a 21% increase. Of the U.S. …