Toby Reynolds

“From the shift away from exploration spending and toward development spending you can see that the supermajors in particular are focusing on getting their returns from what they have got already, rather than going out and finding more,” said IHS Energy’s Chew.

Oil prices have surged to record highs above $54 as a fire at Nigerian export pipeline becomes the latest threat to consumers’ efforts to build winter heating fuel inventories.

Well, no. Oil’s startling price surge this year has actually driven many traders to the sidelines as wild intra-day swings magnified by powerful speculative funds confound traditional trading strategies, market sources say.

Oil prices hit a one month-high of $47 a barrel on Tuesday as China showed no let-up in its strong import growth and traders worried that U.S. petroleum inventories had drawn down heavily due to Hurricane Ivan.

Odd methods of getting oil leftovers now more feasible.

A round up of various OPEC countries’ statements on their ability to increase production.