On 4 May REP published its seventh annual ‘State of Exploration’ report, which benchmarks the performance of international conventional oil and gas exploration. The report has grown to become one of the definitive global benchmarks in the E&P sector.
In a world awash with the stuff, new oil discoveries continue to be elusive. Global exploration drilling in 2016 is forecast to be down 73% on 2014 with discovered oil volumes at a decade low, according to Richmond Energy Partners’ annual ‘The State of Exploration’ report.
Dr Keith Myers, Managing Director, commented:
“Industry has responded to the downturn by slashing exploration budgets by over 70% on average. Sustained oil prices above US$60/bbl are needed to stimulate exploration. The geology economic to explore at US$40/bbl is actually quite limited”.
The report is based on the analysis of more than 1100 exploration wells and covers a total of US$49 billion of exploration drilling spend since 2010.
A few highlights from the report:
Dr Keith Myers said:
“Industry has learned some hard lessons from the downturn – many companies overcommitted to drilling wells in order to access acreage. ‘The State of Exploration’ report makes it clear that the increased drilling did not lead to more success and that the risks of certain plays were systematically underestimated.
While exploration strategy is being reset across the industry, there is a real opportunity for companies. The transition from financial crisis, to a growth crisis once oil prices recover, will be rapid. Those that can maintain investment and upgrade their portfolio through the cycle will be the ones to prosper”.
The State of Exploration report is now available to Richmond Energy Partners Wildcat subscribers. It is also available to purchase. For more information related to the 'State of Exploration' report or the Wildcat service, please contact Sally Todd at Richmond Energy Partners.
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/06052016/richmond-energy-partners-publishes-2016-state-of-exploration-report/