VOL. XLVI

No 43

27-October-2003

SUPPLY/DEMAND

Rising F&D Costs Threaten Industry Profitability, Says ABN AMRO

The global oil industry struggled in 2002, with reserves replacement falling and finding and development (F&D) costs rising to threaten future profitability, according to ABN AMRO. In the Global F&D Cost Handbook report, published on 10 October, ABN AMRO analysts Peter Nicol and John Hancock write: The 10% increase in F&D costs implies lower future returns in single figures...