Abstract
Editor's column Both international and national oil and gas companies are putting tighter reins on capital spending this year, which is not only affecting merger and acquisition activity but could also impact expensive deepwater projects and total global oil supply growth. The industry often must maneuver between the long-term view of financing complex, costly projects and appeasing short-term shareholder demands. This year is no different. After hearing repeated complaints from the investment community on what it sees as lackluster performance amid historically high oil prices, several large firms cut back spending this year. Most notable to cut were the largest Western majors ExxonMobil, Chevron, Total, Shell, and BP, according to investment banker Morgan Stanley. These integrated majors are cutting capital spending by 10% this year compared with 2013 to a total of USD 33 billion, according to Energy Intelligence Research and Advisory. Morgan Stanley now predicts that global oil supply growth will rise to just under 6 million BOPD before falling to 4.7 million BOPD during 2016–18.
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