Iran Oil Power Declining as Explorers Increase Spending

Source: Bloomberg, Ayesha Daya, Brian Swint and Rakteem Katakey  (3/13/12)

"Global exploration spending will jump 20% this year to at least $90B, Barclays research shows."

Bloomberg, Ayesha Daya, Brian Swint and Rakteem Katakey

natural gas oil exploration

The Iran-driven run in oil prices to the highest since 2008 masks the Middle East producer's diminishing importance to global oil supplies as record spending on drilling unearths reserves from Argentina to Angola.

New fields will ease pressure on prices, according to the Centre for Global Energy Studies. Futures show investors expect benchmark Brent crude to drop to less than $100 a barrel in 2015 from $125 today. Global exploration spending, led by Exxon Mobil Corp. (XOM) and Royal Dutch Shell Plc (RDSA), will jump 20 percent this year to at least $90 billion, Barclays Plc research shows.

Offshore drilling may unlock about 25 billion barrels of oil this year, more than four times Norway's remaining reserves, according to Morgan Stanley. In addition, there are so-called unconventional fields in the U.S., where oil production from North Dakota's shale rose 75 percent last year, and Argentina, home to a field found by Repsol YPF SA (REP) that may hold about 23 billion barrels. . .View Full Article

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