Barclays sees drop in oil, gas spending in 2009

NEW YORK Dec 19 (Reuters) - Spending on exploration and production of oil and gas will drop 12 percent to $400 billion in 2009 as the sharp slide in energy prices, tight credit markets and reduced cash flow reverse six years of increased spending, analysts from Barclays Capital said on Friday.

The steepest decline will occur in the United States, where spending will shrink 26 percent, analysts James Crandell and James West said in a report on their survey of 357 oil and gas companies.

Canadian spending budgets will fall 23 percent, while outside North America, the drop is expected to be a more moderate 6 percent. (Reporting by Matt Daily; Editing by Lisa Von Ahn)