Energy Outlook 2012

Interesting report on Oil/Gas outlook from survey of industry leaders, part of newsletter found here.

The Oil and gas industry leaders have forecast improved performance and higher
levels of capital expenditure this year, despite concerns over global economic instability,
according to the new report on the future of the sector by the Economist Intelligence Unit in its
second annual industry barometer.

• 82% of the 185 board-level directors and industry policy makers surveyed for

the report are either highly or somewhat
confident about the business outlook for their
company, compared with 76% last year. Just
8% of those polled described themselves as
pessimistic over performance in 2012.

• Increased investment across the industry

will focus on exploration activity, with North
America emerging as the area with the
greatest opportunities in 2012.

• Findings from the research also show that

nearly two thirds (63%) of executives plan to
invest either somewhat or substantially more
over the next year, in contrast to 49% in 2011.

• 41% of industry professionals expect to

see increased investment in exploration
activities over the next year, with only 4.3%
anticipating a decline. However, if global
economic conditions deteriorate, oil and
gas companies will have to scale back their
spending commitments where they can do
so without creating damage to their wider
portfolios, according to the report.