Barclays Sees Spending on Oil Exploration Nearing $500B in 2011
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Rating Summary:
16 Buy, 23 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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Energy stocks were higher today following a survey by Barclays Capital showing that the global oil industry will spend nearly half-a-trillion dollars in 2011 in the search of Black Gold and natural gas.
Barclays notes that their 402 companies will end up spending $490 billion, an 11% increase from 2010.
Also from the report, for the first time in several years, Western oil companies will aim to spend more than their state-run counterparts. The top producers, including ExxonMobil (NYSE: XOM), Royal Dutch Shell (NYSE: RDS-A), Chevron (NYSE: CVX), and BP Plc (NYSE: BP) are fixing to spend $108.6 billion, up 16% from 2010. Barclays notes that some other large producers haven't disclosed CY11 spending plans yet.
Brazil's major-producer, Petroleo Brasiliero SA (NYSE: PBR) is budgeting
$28.2 billion in 2011, the most of any company, and plans on developing recently-discovered deepwater wells off of Brazil's Atlantic coast.
Although there is a slower regulatory-permitting process to drill in the Gulf of Mexico, it hasn't deterred major drillers. Chevron has noted their plans to increase their presence in the area, and it should be expected that others will follow suit.
The timing couldn't be better, as talk of late has oil surpassing $100 per barrel in 2011, a stone's throw from the $91.23 per barrel that WTI futures closed at on the Comex today. Prices were as high as $91.67 per barrel intraday for February 11 contracts, the most actively traded, surpassing prices seen two-years ago, but still far off of the $140+ per barrel realized in the summer of 2008.
Overall, energy stocks closed higher today, with the Energy Select Sector SPDR (NYSE: XLE) 0.37% better.
Barclays notes that their 402 companies will end up spending $490 billion, an 11% increase from 2010.
Also from the report, for the first time in several years, Western oil companies will aim to spend more than their state-run counterparts. The top producers, including ExxonMobil (NYSE: XOM), Royal Dutch Shell (NYSE: RDS-A), Chevron (NYSE: CVX), and BP Plc (NYSE: BP) are fixing to spend $108.6 billion, up 16% from 2010. Barclays notes that some other large producers haven't disclosed CY11 spending plans yet.
Brazil's major-producer, Petroleo Brasiliero SA (NYSE: PBR) is budgeting
$28.2 billion in 2011, the most of any company, and plans on developing recently-discovered deepwater wells off of Brazil's Atlantic coast.
Although there is a slower regulatory-permitting process to drill in the Gulf of Mexico, it hasn't deterred major drillers. Chevron has noted their plans to increase their presence in the area, and it should be expected that others will follow suit.
The timing couldn't be better, as talk of late has oil surpassing $100 per barrel in 2011, a stone's throw from the $91.23 per barrel that WTI futures closed at on the Comex today. Prices were as high as $91.67 per barrel intraday for February 11 contracts, the most actively traded, surpassing prices seen two-years ago, but still far off of the $140+ per barrel realized in the summer of 2008.
Overall, energy stocks closed higher today, with the Energy Select Sector SPDR (NYSE: XLE) 0.37% better.
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