Decreased CAPEX; Increased Reserves (2009)

Well, well, well, this is interesting.

From the Oil and Gas Journal, there is a report from IHS Herold that oil and gas reserves rose in 2009. Okay, so? In a recession? Hmmm.

But this is the kicker: oil and gas reserves rose in 2009 despite drillers spending less money to develop their reserves. And that decrease in worldwide upstream investments was not trivial: worldwide investment by 224 oil and gas companies decreased 23% -- repeat, 23% -- last year.

The report:

• Oil reserves, up 3% to 164 billion bbl, reversed a 2-year decline
• Natural gas reserves climbed 3.7%

The report is remarkable in several other regards which you can see at the link above.

IHS Herold expects increased spending in 2010. It certainly has in the North Dakota Bakken. 


Peak oil theory, anyone?