2005 upstream capex.(capital expenditures, petroleum industry)

Publication: Oil and Gas Investor

Publication Date: 01-JUL-05

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COPYRIGHT 2005 Hart Publications, Inc.

Producers who had already increased their 2005 capex plans are boosting them further, according to a midyear spending-survey update from Citigroup Smith Barney. Producers' new plans represent the strongest oil-service demand increase since 2001, reports Geoff Kieburtz, an analyst with the firm.

The 201 companies Kieburtz surveyed plan to spend $191.8 billion in 2005, up from actual spending of $169.4 billion in 2004 and up 8% from their original 2005 capex budgets.

Among the 126 companies with U.S. capex plans, spending is to total $43.7 billion this year, up from actual spending of $37.6 billion in 2004, Kieburtz reports. "With independents and majors driving the growth, almost 45% of respondents have increased spending plans since...

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