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Higher costs and need for exploration highlighted in oil and gas industry report
- Source: First Break, Volume 25, Issue 5, May 2007,
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- 01 May 2007
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Abstract
Global Upstream Performance Review 2006 is the latest annual report on 200 oil and gas companies tracked by corporate oil analysts and advisors John S. Herold (US) and Harrison Lovegrove (UK). It constitutes one of the best regular assessments of the oil and gas industry’s performance and the challenges it faces. We publish here extracts from the abridged version of the report. Tight markets and escalating prices fuelled a 32% jump in the average price per barrel oil equivalent (boe) realized by the Global Upstream Performance Review universe of over 200 oil companies in 2005; the sector enjoyed a revenue gain of $190 billion over the prior year. Clearly, it is a challenge for the industry to invest such a surge of funds, particularly given the restrictions on access to basins with large resource potential. For context, the entire industry’s finding and development investment during 2004 was $164 billion.