Against a backdrop of renewed global corporate confidence, oil and gas (O&G) companies anticipate growth in 2011, according to Ernst & Young's Capital Confidence Barometer. Of the 60 O&G industry respondents, 37% are focused on growing the company organically by adding projects and properties; 46% are actively looking to grow inorganically through mergers and acquisitions.

O&G industry respondents were broken out from the broader group of 1,000 respondents. The industry group was largely optimistic about the economy. Sixty-five percent said they are more optimistic today than they were last October. An additional 18% continue to feel optimistic since the last survey.

Though optimistic, O&G respondents' greatest areas of focus, as a result of the economic situation, continue to be creating cost reductions and operational efficiencies and improving cash flow/liquidity. Most of the respondents expect financing will be readily available to fund major acquisitions and/or capital projects in the coming year.

•23% of respondents believe financing will be available within 6 months.

•23% of respondents believe financing will be available in 6-12 months.

•18% of respondents believe financing will be available in 1-2 years.

•33% believes that access to finance is not a problem.

"With oil prices high and the fundamentals for gas gaining strength, we expect really strong growth-oriented investment over the next year," said Jon McCarter, Ernst & Young's Americas Oil and Gas transactions leader. "Political unrest in the Middle East continues to put the spotlight on developing energy sources outside of that region and companies are working to respond to that need, as well as higher demand resulting from economic growth."