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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: pz who wrote (32625)	12/8/1998 6:46:00 PM
From: kumar L chalasani	Respond to of 95453

Survey points to lower 1999 exploration spending Tuesday December 8, 6:10 pm Eastern Time Survey points to lower 1999 exploration spending HOUSTON, Dec 8 (Reuters) - Most U.S. oil and gas companies expect to hold their exploration spending steady or cut it in 1999, according to survey results published on Tuesday. The Arthur Andersen U.S. Oil & Gas Industry Survey showed that 38 percent of the 83 companies that responded expect to cut their U.S. exploration spending in 1999 while 33 percent expected no change. Outside the United States, 20 percent of the companies expected to cut their exploration spending while 64 percent expected no change. Companies participating in the consultancy firm's annual survey included integrated majors Amoco Corp(NYSE:AN - news), Chevron Corp(NYSE:CHV - news), Conoco (NYSE:COC - news), Exxon Corp(NYSE:XON - news) and Mobil Corp(NYSE:MOB - news). The survey ranked the United States as the most attractive area for oil and gas investment, followed by Canada, the Middle East and West Africa. Among the majors Kazakhstan was ranked first, followed by Australia, Azerbaijan, the United States, West Africa and Venezuela. Companies taking part in the survey expect the price for a barrel of West Texas Intermediate (WTI) crude oil to average $16 in 1999 and to rise by an average of 4.4 percent a year to $19 in 2003. They expect the price for a thousand cubic feet of natural gas at the Henry Hub to average $2.25 in 1999 and to rise by an annual average of 2.6 percent to $2.49 in 2003. Arthur Andersen's managing director of energy services, Victor Burk, said current low oil prices were leading to significant cuts in investment and employment at oil and gas companies and were also driving an unprecedented level of merger and acquisition activity. ''It is clear that most companies have accepted the new reality of low prices, low margins and less access to capital,'' Burk said.