energy : oil drilling : survey finds producers plan to spend more than originally planned in . . .
survey finds producers plan to spend more than originally planned in 2000
06 / 19 / 2000
petroleum finance week
( c ) 2000 phillips business information , inc .
oil and gas producers plan to increase their worldwide exploration and
production expenditures by more than they anticipated
at the beginning of the year , lehman brothers inc . found in a mid - year
update of its annual e & p survey . " the 326 companies
we surveyed are planning on an 18 . 2 percent increase , versus a 10 . 2 percent
rise budgeted in december , " said james d .
crandell , who follows oil services and drilling for the new york investment
banker .
he emphasized that the gain by the 326 producers in lehman ' s survey reflects
increases in budgets for 2000 and not
underspending of budgets during 1999 . " among the companies that were
included in our december 1999 and may 2000
surveys , global spending actually came in slightly above what was estimated
to have been spent during 1999 in december . it
also indicates that nearly $ 6 billion has been added to 2000 worldwide
exploration budgets since december , " crandell said .
the survey ' s respondents said that they planned to increase u . s . e & p
expenditures by 17 . 6 percent , up from 15 . 9 percent
earlier in the year . crandell said that the greater increase was driven
almost entirely by independent producers . " in our survey ,
227 independents indicated e & p spending growth in 2000 of 26 . 1 percent
versus a 22 . 9 percent increase budgeted for the
year in december , " he indicated . " some 40 percent of the independents we
surveyed have increased their u . s . e & p budgets ,
while about 23 percent plan on spending less than what they indicated last
december . higher natural gas prices and increased
cash flow are the main drivers behind this . "
crandell said that anadarko petroleum corp . ( nyse : apc ) , apache corp . ( nyse :
apa ) , bhp petroleum , h . s . resources inc .
( nyse : hse ) , mcmoran exploration co . ( nyse : ran ) , mdu resources group inc .
( nyse : mdu ) , mitchell energy and
development corp . ( nyse : mnd . a and mnd . b ) , santa fe snyder corp . ( nyse :
sfs ) , stone energy corp . ( nyse : sgy ) and
titan exploration inc . - now pure resources inc . ( nyse : prs ) - were among
the larger independents to make the most
significant upward revisions . the ones that significantly reduced planned
u . s . e & p outlays for the year included barrett
resources corp . ( nyse : brr ) , belco oil and gas corp . ( nyse : bog ) , burlington
resources inc . ( nyse : br ) , coastal corp .
( nyse : cgp ) , forcenergy inc . ( nyse : fen ) , houston exploration co . ( nyse :
hex ) , kerr - mcgee corp . ( nyse : kmg ) , mariner
energy corp . and williams production co .
the survey found that major oil companies plan about the same percentage
gain in their 2000 u . s . e & p expenditures ( 8 . 8
percent ) at midyear as they did at the beginning of the year ( 8 . 4 percent ) .
among the 14 companies in this category , 31
percent made meaningful increases in their 2000 e & p spending estimates
during the first six months , including amerada hess
corp . ( nyse : ahc ) , conoco inc . ( nyse : coc . a and coc . b ) , occidental petroleum
corp . ( nyse : oxy ) and total fina elf s . a .
( nyse : tot ) . another 19 percent - including eni spa ( nyse : e ) , royal
dutch / shell ( nyse : rdp and stt ) and texaco inc .
( nyse : tx ) - scaled back their domestic spending estimates , while the
remaining 50 percent of the majors in the survey
remained the same .
' the increase in canada . . . is nothing short of staggering . . . '
" the increase in canada indicated by the 85 companies in our survey is
nothing short of staggering , " crandell continued . of
the 85 companies that he contacted , 44 . 7 percent budgeted higher
expenditures for 2000 than for 1999 . " compared with
december , 41 percent of them have increased their estimated spending in 2000
by more than 10 percent , while 20 percent
have reduced it by more than 10 percent . the remaining 39 percent have kept
it within 10 percent of what was originally
estimated , " crandell said . talisman energy inc . ( nyse : tlm ) led the group
with a huge increase , followed by anderson
exploration ltd . ( tse : axl ) , gulf canada resources ltd . ( nyse : gou ) , murphy
oil corp . ( nyse : mur ) , pan canadian
petroleum ltd . ( tse : pcp ) and shell canada ltd . ( tse : shc ) . like their u . s .
counterparts , producers above the border raised
their 2000 e & p budgets in response to higher gas prices and increased cash
flow , according to the lehman analyst .
he said that foreign upstream budgets were an area of surprise : " the 14 . 9
percent gain indicated by the 99 oil and gas
companies that have operations outside the united states and canada was well
above the 5 . 7 percent increase for 2000
estimated last december . as in other geographies , there were more companies
that increased budgets than decreased them . "
overall , crandell said that 33 percent of the surveyed companies raised
their 2000 e & p budgets by more than 10 percent , 43
estimated expenditures in roughly the same range and 24 percent indicated
that they would spend less than originally planned .
he said that the larger increases were driven by some big companies which
materially increased their budgets , including
texaco , petroleos brasileiros s . a . , petroleos mexicanos s . a . and repsol ypf
s . a . ( nyse : rep ) among the multinationals and
amerada hess , apache , premier oil plc . and woodside energy among mid - sized
companies .
crandell noted that while respondents ' average price assumptions rose during
2000 ' s first six months ( to $ 22 . 04 from $ 19 . 25
per barrel of crude oil and to $ 2 . 58 from $ 2 . 38 per thousand cubic feet of
natural gas ) , they still trail current prices and what
lehman brothers estimates for the year ( $ 28 per barrel of crude and $ 3 . 30
per mcf of gas ) . " this suggests a stronger second
half than expected , should companies raise budgets further to reflect the
higher prices , " he said .
- nick snow in washington
- - - - - - - - - - - - - - - - - - - - - - forwarded by john peyton / hou / ect on 06 / 19 / 2000 07 : 36
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subject : energy : oil drilling : survey finds producers plan to spend more than
originally planned in . . .
survey finds producers plan to spend more than originally planned in
2000
oil and gas producers plan to increase their worldwide exploration and
production expenditures by more than they anticipated at the beginning
of the
year , lehman brothers inc . found in a mid - year update of its annual e & p
survey . " the 326 companies we . . .
published by : petroleum finance week
date : 06 / 19 / 2000
word count : 894
relevance score on scale of 100 : 80
folder name : energy : oil drilling
full - text article available at
c = ptry
articles are included at no charge for flat - fee corporate customers . ( under
standard pricing , charges apply . for details , click the $ icon on the dow
jones interactive home page , located at http : / / www . djinteractive . com . )
to review or revise your folder , visit http : / / www . djinteractive . com or
contact dow jones customer service by e - mail at custom . news @ bis . dowjones . com
or by phone at 800 - 369 - 7466 . ( outside the u . s . and canada , call 609 - 452 - 1511
or contact your local sales representative . )
copyright ( c ) 2000 dow jones & company , inc . all rights reserved
energy : oil drilling : survey finds producers plan to spend more
than originally planned in . . .
survey finds producers plan to spend more than originally planned in 2000
06 / 19 / 2000
petroleum finance week
( c ) 2000 phillips business information , inc .
oil and gas producers plan to increase their worldwide exploration and
production expenditures by more than they anticipated
at the beginning of the year , lehman brothers inc . found in a mid - year
update of its annual e & p survey . " the 326 companies
we surveyed are planning on an 18 . 2 percent increase , versus a 10 . 2 percent
rise budgeted in december , " said james d .
crandell , who follows oil services and drilling for the new york investment
banker .
he emphasized that the gain by the 326 producers in lehman ' s survey reflects
increases in budgets for 2000 and not
underspending of budgets during 1999 . " among the companies that were
included in our december 1999 and may 2000
surveys , global spending actually came in slightly above what was estimated
to have been spent during 1999 in december . it
also indicates that nearly $ 6 billion has been added to 2000 worldwide
exploration budgets since december , " crandell said .
the survey ' s respondents said that they planned to increase u . s . e & p
expenditures by 17 . 6 percent , up from 15 . 9 percent
earlier in the year . crandell said that the greater increase was driven
almost entirely by independent producers . " in our survey ,
227 independents indicated e & p spending growth in 2000 of 26 . 1 percent
versus a 22 . 9 percent increase budgeted for the
year in december , " he indicated . " some 40 percent of the independents we
surveyed have increased their u . s . e & p budgets ,
while about 23 percent plan on spending less than what they indicated last
december . higher natural gas prices and increased
cash flow are the main drivers behind this . "
crandell said that anadarko petroleum corp . ( nyse : apc ) , apache corp . ( nyse :
apa ) , bhp petroleum , h . s . resources inc .
( nyse : hse ) , mcmoran exploration co . ( nyse : ran ) , mdu resources group inc .
( nyse : mdu ) , mitchell energy and
development corp . ( nyse : mnd . a and mnd . b ) , santa fe snyder corp . ( nyse :
sfs ) , stone energy corp . ( nyse : sgy ) and
titan exploration inc . - now pure resources inc . ( nyse : prs ) - were among
the larger independents to make the most
significant upward revisions . the ones that significantly reduced planned
u . s . e & p outlays for the year included barrett
resources corp . ( nyse : brr ) , belco oil and gas corp . ( nyse : bog ) , burlington
resources inc . ( nyse : br ) , coastal corp .
( nyse : cgp ) , forcenergy inc . ( nyse : fen ) , houston exploration co . ( nyse :
hex ) , kerr - mcgee corp . ( nyse : kmg ) , mariner
energy corp . and williams production co .
the survey found that major oil companies plan about the same percentage
gain in their 2000 u . s . e & p expenditures ( 8 . 8
percent ) at midyear as they did at the beginning of the year ( 8 . 4 percent ) .
among the 14 companies in this category , 31
percent made meaningful increases in their 2000 e & p spending estimates
during the first six months , including amerada hess
corp . ( nyse : ahc ) , conoco inc . ( nyse : coc . a and coc . b ) , occidental petroleum
corp . ( nyse : oxy ) and total fina elf s . a .
( nyse : tot ) . another 19 percent - including eni spa ( nyse : e ) , royal
dutch / shell ( nyse : rdp and stt ) and texaco inc .
( nyse : tx ) - scaled back their domestic spending estimates , while the
remaining 50 percent of the majors in the survey
remained the same .
' the increase in canada . . . is nothing short of staggering . . . '
" the increase in canada indicated by the 85 companies in our survey is
nothing short of staggering , " crandell continued . of
the 85 companies that he contacted , 44 . 7 percent budgeted higher
expenditures for 2000 than for 1999 . " compared with
december , 41 percent of them have increased their estimated spending in 2000
by more than 10 percent , while 20 percent
have reduced it by more than 10 percent . the remaining 39 percent have kept
it within 10 percent of what was originally
estimated , " crandell said . talisman energy inc . ( nyse : tlm ) led the group
with a huge increase , followed by anderson
exploration ltd . ( tse : axl ) , gulf canada resources ltd . ( nyse : gou ) , murphy
oil corp . ( nyse : mur ) , pan canadian
petroleum ltd . ( tse : pcp ) and shell canada ltd . ( tse : shc ) . like their u . s .
counterparts , producers above the border raised
their 2000 e & p budgets in response to higher gas prices and increased cash
flow , according to the lehman analyst .
he said that foreign upstream budgets were an area of surprise : " the 14 . 9
percent gain indicated by the 99 oil and gas
companies that have operations outside the united states and canada was well
above the 5 . 7 percent increase for 2000
estimated last december . as in other geographies , there were more companies
that increased budgets than decreased them . "
overall , crandell said that 33 percent of the surveyed companies raised
their 2000 e & p budgets by more than 10 percent , 43
estimated expenditures in roughly the same range and 24 percent indicated
that they would spend less than originally planned .
he said that the larger increases were driven by some big companies which
materially increased their budgets , including
texaco , petroleos brasileiros s . a . , petroleos mexicanos s . a . and repsol ypf
s . a . ( nyse : rep ) among the multinationals and
amerada hess , apache , premier oil plc . and woodside energy among mid - sized
companies .
crandell noted that while respondents ' average price assumptions rose during
2000 ' s first six months ( to $ 22 . 04 from $ 19 . 25
per barrel of crude oil and to $ 2 . 58 from $ 2 . 38 per thousand cubic feet of
natural gas ) , they still trail current prices and what
lehman brothers estimates for the year ( $ 28 per barrel of crude and $ 3 . 30
per mcf of gas ) . " this suggests a stronger second
half than expected , should companies raise budgets further to reflect the
higher prices , " he said .
- nick snow in washington
- - - - - - - - - - - - - - - - - - - - - - forwarded by john peyton / hou / ect on 06 / 19 / 2000 07 : 36
pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
djcustomclips @ djinteractive . com on 06 / 19 / 2000 08 : 27 : 26 pm
please respond to nobody @ maill . djnr . com
to : 1346 @ wctopics . djnr . com
cc :
subject : energy : oil drilling : survey finds producers plan to spend more than
originally planned in . . .
survey finds producers plan to spend more than originally planned in
2000
oil and gas producers plan to increase their worldwide exploration and
production expenditures by more than they anticipated at the beginning
of the
year , lehman brothers inc . found in a mid - year update of its annual e & p
survey . " the 326 companies we . . .
published by : petroleum finance week
date : 06 / 19 / 2000
word count : 894
relevance score on scale of 100 : 80
folder name : energy : oil drilling
full - text article available at
c = ptry
articles are included at no charge for flat - fee corporate customers . ( under
standard pricing , charges apply . for details , click the $ icon on the dow
jones interactive home page , located at http : / / www . djinteractive . com . )
to review or revise your folder , visit http : / / www . djinteractive . com or
contact dow jones customer service by e - mail at custom . news @ bis . dowjones . com
or by phone at 800 - 369 - 7466 . ( outside the u . s . and canada , call 609 - 452 - 1511
or contact your local sales representative . )
copyright ( c ) 2000 dow jones & company , inc . all rights reserved