Exxon's annual capital spending will range from $33 billion to $37 billion during the next several years, up from $32.2 billion last year, the company said on Friday in its annual filing with the US Securities and Exchange Commission.

Exxon will likely provide more detail about its planned spending increase at an analyst meeting next month, but many other oil companies, encouraged by prolonged high crude prices have raised capital expenditures.

“Last year when people put together their budgets in late 2009, there was a lot more uncertainty regarding the economy and oil prices,” Mike Breard, analyst at Hodges Capital Management in Dallas, said. “This year, oil prices have stayed up around $80 to $90 per barrel and its looks like demand for oil has increased.”

Last year, the Irving, Texas company forecast spending of $25 billion to $30 billion per year through 2014. During the year, it closed a deal for US natural gas company XTO Energy Corp, so some of the increase in capital spending will likely be earmarked for the acquired company, analysts said.

Phil Weiss, analyst at Argus Research, said Exxon's forecast spending also could reflect rising costs.

“With higher oil prices, I have to assume that service costs are going up,” Weiss said. “Also, a little bit more exploration probably makes sense considering their reserve growth, which wasn't that great last year.”

The company's bigger budget also may signal that it has increased its appetite for natural gas assets in a time of low prices.

“All of the major oil companies are buying smaller gas companies and gas properties in the United States, and I think that trend is going to continue this year,” Hodges Capital's Breard, said.

Exxon will meet with analysts in New York on March 9.

Shares of Exxon edged up slightly after hours, trading at $85.50. That compares with the Irving, Texas company's New York Stock Exchange close of $85.34.