Another cautious year

Worldwide upstream oil and gas spending is expected to show only a slight rise in 2003 compared with last year, with most of the increase coming from state-owned companies and the European majors. The US faces another year of reduced spending, writes David Townsend

WORLDWIDE global exploration and production (E&P) spending will rise modestly this year, despite continued restraint in the US, where, for the second year running, growth spending is expected to lag behind the rest of the world. Analysts' forecasts and capital expenditure (capex) plans already announced for 2003 by the world's major and larger independent oil and gas companies show that (notwithstanding the recent rise in crude prices) many remain concerned about the long-term outlook for oil (and gas) prices. In addition, concerns about the state of the world economy, the prospect of military action against Iraq and a lack of quality prospects are undermining E&P activity. Rising sp