Barclays sees 6% oil and gas exploration spending increase for 2014

A new report says oil and gas companies will spend $723 billion on E&P in the new year, according to Reuters. Barclays Bank has released an oil and gas forecast for 2014 that sees companies spending $723 billion to increase exploration and production. This is a 6.1% increase over 2013 spending.

The report says North America will see a 7% increase in E&P spending, compared to a 2% increase this year. E&P spending outside North America is expected to be less, standing at about 6% for 2014. According to Barclays, that is a drop from the 10% increase seen this year.

Limited growth by major oil companies and corruption probes into Chinese companies are being blamed for the lower international growth. However, that number is positively offset by growth in the Middle East, Latin America, and Russia.

Barclays' has said the growth is unexpected, as the bank had prepared for a growth slowdown in 2014.

The report uses data collected via a survey of more than 300 oil and gas companies. The survey was conducted last month.

E&P companies are using existing crude prices to determine spending budgets for the year ahead, according to Reuters, with $98 per barrel Brent crude and $89 per barrel West Texas Intermediate determining the 2014 budgets.

The Barclays Global 2014 E&P Spending Outlook is available here.

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