In April, KPMG surveyed 550 financial executives at energy companies. Among respondents, 67% believe that crude oil prices will top $111 per barrel this year. For 55% of respondents, regulatory issues will be their primary challenge this year, and for 43%, they will be the biggest factor affecting capital spending decisions. Sixty-seven percent expect capital spending to increase, and 33% expect it to increase by more than 10%. Thirty-five percent of respondents plan to increase R&D spending on alternative energy projects this year, up from 15%, but 62% plan no change. When asked to name the alternative energy in which they will invest the most, 44% cited shale gas and oil. Fifty-three percent of respondents said that, to their knowledge, their companies were not planning to be involved with a major acquisition this year, down from 80%. An increase in staff is expected by 49% of respondents.

Source: KPMG