Annual reports from 42 oil and natural gas companies that have reported data on upstream expenditures since 2000 show that spending on exploration and development throughout the world increased by 5% ($18 billion) in 2013, while spending on property acquisition fell by $17 billion. Total upstream spending by these companies was relatively flat in 2013 (plus 0.4%) after a period of strong growth (averaging 11% per year) from 2000 to 2012. The reports, which are filed with the U.S. Securities and Exchange Commission, show that the slight increase in spending in 2013 was driven by expenditures to explore and develop fields acquired in earlier years. In the past two years, flat oil prices and rising costs have contributed to declining cash flow for this group of companies. Continued declines in cash flow, particularly in the face of rising debt levels, could challenge future exploration and development. However, reduced spending […]