Oil: global investments expected to grow by 13 percent in 2005

Global investments in oil exploration and production are expected to increase in 2005 by 13% to reach a record value of 170 billion dollars, estimates the French Petroleum Institute (IFP) in a study published Monday.

The investments, favored by a persistently high oil price, should benefit the oil services markets, in particular those of geophysics, drilling and deep sea construction, which should overall increase by 15%, judges the IFP in its survey on perspectives of the oil services industry.

The IFP forecasts that upstream investments in 2006 should continue to grow between 8% and 10%, analysts not expecting a drop in the price of a barrel in the short to medium term.

Since 2002, oil prices have almost doubled on average, going from 25 dollars to more than 50 dollars in the first nine months of 2005, while global expenditure on exploration and production has only increased by around 30%, notes the 'organization.

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