The oil industry plans to spend more on deepwater drilling
The damaged blow out preventer along with the Lower Marine Riser Package cap from the Deepwater Horizon oil rig that caused the massive oil spill is extracted and put aboard the vessel Q4000 in the Gulf of Mexico.
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STACEY VANEK SMITH: If you thought the BP oil leak in the Gulf of Mexico would deter deepwater drilling, think again. The oil industry will spend more than ever looking for new oil and gas wells next year.
Marketplace's Stephen Beard reports from London.
STEPHEN BEARD: A new oil survey shows that spending on new wells, platforms and drilling rigs will hit almost half a trillion dollars next year. That's an 11 percent increase on 2010. This suggest confidence in the oil industry that the increase in the price of crude will hold. So extra production should be profitable. But also there's the growing cost of operating in tricky conditions. Companies will splash out even more on deepwater drilling -- for example. Big oil has not been deterred by BP's disaster.
Dr. Clifford Jones, is an energy expert at Aberdeen University.
CLIFFORD JONES: Oil production and oil exploration won't stop. They can't. Because the world needs 80 million barrels of oil a day. And that state of affairs can't be changed in response to one event, however tragic.
But the disaster is adding more cost to offshore oil exploration in the U.S. as drilling permits are now harder to come by.
In London this is Stephen Beard for Marketplace.