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Oil And Gas E&P Grows But Discoveries Shrink On Year: Rystad

ENERGY

Spending on conventional oil and gas exploration is growing and expected to top $50 billion this year, the highest since 2019, but discovered volumes are falling to new lows, according to Rystad Energy.

  • In H1 2023, explorers found 2.6 billion barrels of oil equivalent (boe), 42% lower than the first half of 2022 total of 4.5 billion boe.
  • Upstream companies are in a period of uncertainty, seeking to capitalize on the increased demand for fossil fuels and source further resources, but results have been underwhelming.
  • “If exploration efforts continue to yield unimpressive results for the remainder of the year, 2023 could be a record-breaker for the wrong reasons,” said Aatisha Mahajan, vice president of upstream research, Rystad Energy
  • The six majors – ExxonMobil, BP, Shell, TotalEnergies, Eni and Chevron – continue to play a critical role in global exploration. They are expected to spend about $7 billion in 2023 on exploration, up 10% on 2022. Rystad’s forecasts show that the majors will contribute about 14% of total global exploration spending in the coming months.


Source: Rystad Energy

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