55 percent predict drop; 44 percent to raise spending on exploration

HOUSTON - Even as oil prices ascended to new highs of more than $124 a barrel this week, many oil and gas industry executives say they expect the price to fall significantly by year’s end, a new survey shows.

Fifty-five percent of 372 petroleum industry executives surveyed by KPMG LLP said they think the price of a barrel of crude will drop below $100 by the end of the year. Twenty-one percent of respondents predicted a barrel of oil will end the year between $101 and $110, while 15 percent forecast the year-end price to be between $111 and $120 a barrel.


Nine percent said they expect the price to close the year where it’s been this week — above $120 a barrel.

What’s more, 44 percent of the executives said their companies plan to increase capital spending on exploration and production by 10 percent during the next year.