U.S. Markets close in 1 hr 48 mins

A Wall Street Transcript Interview with James West, a Managing Director and Barclays Capital's Oil Services and Drilling Analyst: Global Oil and Gas E&P Spending Expected to Grow in 2014

67 WALL STREET, New York - February 3, 2014 - The Wall Street Transcript has just published its Oil & Gas: Exploration & Production Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Oil Price Expectations - Shale, Offshore and Deepwater Drilling - Unconventional Resources - Domestic Crude Prices - Capital Expenditures and Consolidation Activity - Frontier Exploration and Development - Offshore Deepwater Oil Discoveries - Offshore Capex Growth

Companies include: Schlumberger Limited (SLB), Halliburton Company (HAL), Key Energy Services Inc. (KEG), Superior Energy Services Inc. (SPN), PetroChina Co. Ltd. (PTR), Sinopec Shanghai Petrochemical (SHI), CNOOC Ltd. (CEO), Baker Hughes Inc. (BHI), Weatherford International Ltd. (WFT) and many others.

In the following excerpt from the Oil & Gas: Exploration & Production Report, an expert analyst discusses the outlook for the sector for investors:

TWST: What is your outlook for 2014 for the oil and gas sector, and how does that outlook differ across geographies?

Mr. West: We are constructive on the outlook for capital investments into oil and gas for 2014. We do major capital spending surveys twice a year, once in December for the forward year and then we update that again in June. So we recently completed our survey for December, and that survey is basically an academic piece of work where we call the oil and gas companies around the globe and ask them what they are planning to spend over the next year on oil and gas production. When we called them in December, they told us that they anticipated that the numbers would be higher than this year, and that global E&P spending will be up about 6% with growth of 7% in North America, which is a mixture of plus 3% in Canada, plus 8.5% in the U.S. and growth of 6% internationally outside North America, with some extreme strength and then some pockets of weakness.

Pockets of strength are the Middle East, up 14%, and Latin America up 13%. That's including Brazil, which is actually down 2% - as markets like Colombia, Peru, Ecuador, Mexico, Argentina are growing rapidly - and Russia is up 11%. There were a few areas that were below the overall trend, which included India and the Asia Pacific area which is only up 3%, and Africa overall is about flat year over year in terms of spending.

I think that the numbers for Africa have a lot to do with continued unrest in North Africa and a pause in East Africa. Companies have discovered a ton of gas in East Africa, and so the oil companies are trying to assess what to do with the all that gas. West Africa should grow and offset some of those softer numbers, but overall, they are flattish in Africa this year. So there will be some pockets in Africa, like Sub-Saharan Africa on west side, which will be extremely strong.

Looking at the numbers overall, we think the survey is definitely a positive...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.