World Energy Outlook 2006

downstream activities, including GTL, pipelines, oil tankers, distribution
and retailing (Figure 12.2). The shares of exploration and development and
LNG projects are set to be higher in 2006-2010 than in the first half of the
decade. Upstream spending would grow at an average annual rate of 6.7%
between 2005 and 2010. In cost inflation-adjusted terms, spending is
projected to grow by about 40% between 2005 and 2010 – on the
assumption that unit costs level off in 2007 and begin to decline gradually
towards the end of the decade. By 2010, cost inflation-adjusted spending is
expected to be 46% higher than in 2000.
16%
4%
Figure 12.2: Total Oil and Gas Industry Investment by Sector
15%
2001-2005
$1.4 trillion
65%
2006-2010
$2.1 trillion
320 World Energy Outlook 2006 - FOCUS ON KEY TOPICS
14%
7%
12%
67%
Exploration and development Oil refining LNG Other
Source: IEA databases and analysis.
National oil and gas companies account for 35% of the total investment of all
the companies surveyed from 2000 to 2010. Independents account for 15%,
previously state-owned companies 11% and major internationals 38%. The
share of the international oil companies falls between the first and second
halves of the decade, while all others increase. The national oil companies’
share of investment increases the most. While national, international and
independent oil companies all more than double their investment between
2001 and 2010, the previously state-owned private companies quadruple theirs
(Figure 12.3).
© OECD/IEA, 2007