Investors get much of oil firms' cash windfall
Defence pays dividends for private investorsWhile spending is rising, analysts say that much of the boost is being soaked up by higher costs, as well as the drop in the U.S. dollar.
According to the International Monetary Fund, rising costs for rigs and shortages of skilled engineers have largely cancelled out the increase in industry spending.
An IMF study of 53 national and international oil companies found they invested more than $240 billion in nominal terms in 2006, although the real level of investment was less than half that.
"Some of the capital spending is going into higher costs and not actually adding new supply," said Jason Kenney, oil analyst at ING in Edinburgh.
Of the world's five largest fully publicly traded oil firms by market value - Exxon, Shell, BP, Total SA and Chevron Corp.
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