Worldwide upstream expenditures are estimated to grow moderately in 2007, according to surveys by researchers at two major investment-banking firms. After canvassing 299 oil and gas companies, the Lehman Brothers concludes these firms plan to increase 2007 global upstream outlays 9%, to $292 billion, from the estimated $268 billion they spent in 2006. "Unlike the past two years, the [spending] gains are expected to be strongest outside North America," says James D. Crandell, managing director, oil-service equity research, for Lehman Brothers in New York. "International E&P expenditures are estimated to rise 13% in 2007, to $196 billion, led by national oil companies (NOCs)." Among the NOCs, several Russian oil companies show the strongest estimated year-over-year E&P spending increases: Rosneft, 57%; Lukoil, 47%; Surguneftegaz, 43%; and Gazprom, 41%. Comparatively, the major international integrateds show more modest expected increases: Chevron, 34%; Royal Dutch Shell, 10%; and ExxonMobil, 7%. For more on this, see the February issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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