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Page added on July 30, 2007

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Big Oil spends more, pumps fewer barrels

LONDON (Reuters) – The world’s three largest fully publicly traded oil firms are investing billions of dollars more this year and the extra spending has yet to result in higher production.

Exxon Mobil Corp., Royal Dutch Shell Plc and BP Plc posted falling second-quarter output, even though they plan up to a total of $61 billion in 2007 capital spending, up 5.5 percent from 2006.

“We’re in a transition for the supermajors where they are spending an awful lot to reinvigorate their portfolios,” said Jason Kenney, European oil analyst at ING in Edinburgh. “It takes time.”

The drop in supply reflects declining output from fields in mature oil regions like the North Sea, violence by militants in Nigeria that has cut output for some companies and slow access to big sources of new reserves.


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