Many Oil Executives Expect Price To Fall This Year

Houston, TX, May 9, 2008--Even as oil prices near $125 a barrel, many oil and gas industry executives expect the price to fall substantially by the end of the year.

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  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.

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

The survey was conducted last month and included executives for major oil companies, independent exploration and production outfits and other energy companies.

Their rosier view of prices conflicts with widely watched oil price analyst Goldman Sachs, which said this week oil prices could rise to $150 to $200 within two years.