Development and exploration capex among the 100 largest domestic public oil and gas companies increased 17% in 2011 compared with the previous year, according to Global Hunter Securities’ annual Finding & Development (F&D) Cost Study.

Furthermore, according to the July 12 report, 2011 aggregate spending -- excluding acquisitions -- increased to $200.3 billion compared with $170.7 billion in 2010. During a five-year period from 2007 to 2011, average development spending had a compound annual growth rate (CAGR) of 6.6%.

Natural gas reserves in 2011 eroded as last year’s growth rate ...