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Article: An inquiry into the capital budgeting process and analytical procedures utilized by firms in the oil and gas extraction industry
- Article from:
- Petroleum Accounting and Financial Management Journal
- Article date:
- July 1, 1999
- Author:
CopyrightCopyright University of North Texas Summer 1999. Provided by ProQuest LLC. (Hide copyright information)
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Both independents and major integrated oil and gas companies were, as recently as the end of 1997, forecasting along-term energy upswing with few foreseeing the downturn which has developed in the industry. The capital budgets originally proposed for 1998 included heavy outlays for exploration and production, reflecting the belief at that time that the "good times" outlook for the future would continue. Unfortunately, by mid- 1998, price declines had forced many majors and most independents to rethink their capital spending plans. While the major integrated companies are still planning a moderate to slight increase in capital expenditures, most independents are indicating at least a five ...