Oil firms not to increase drilling

Royal Dutch/Shell Group, Norsk Hydro ASA and other oil firms said they won’t accelerate drilling until they are convinced higher prices are here to stay and that governments will protect the industry when prices fall.

“Oil companies are cautious about spending too much on exploration,” said Norsk Hydro chief executive Eivind Reiten in an interview at an oil conference in Stavanger that discussed how to revive North Sea fields from more than two decades of pumping.

“It’s too early to rush into new exploration areas.” As crude stays above $40 a barrel and natural gas prices rally, companies including Exxon Mobil Corp and BP Plc are buying back stock and increasing dividends rather than splashing out on new fields.