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Exploration Spending To Recover Over Next Five Years: Woodmac


Oil and gas exploration spending to recover from historic lows according to Wood Mackenzie with deepwater areas of Africa and Eastern Mediterranean providing most growth opportunities.

  • The recovery in global exploration spending is expected to be smaller than past booms as discipline in spending and a lack of quality prospects keep budgets in check.
  • Exploration spend (excluding appraisal) will recover from historic lows to average US$22 billion per annum in real terms over the next five years.
  • The spending is down from the average $27 billion spend over the previous six years.
  • Attractive exploration economics, the need for energy security and the emergence of new frontiers will incentivize oil and gas companies.
  • Efficiency gains serve to enhance the returns from both development and exploration. Oil field contractors gearing up for the offshore recovery by pivoting away from slower growth shale fields over the past year.

Source: Wood Mackenzie

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