Westwood: Oil and gas exploration remained resilient in 2021
Westwood Global Energy Group’s latest analysis found that despite challenges from COVID-19 and the accelerating energy transition, high-impact oil and gas exploration drilling in 2021 has maintained momentum.
While high impact drilling levels in 2021 were similar to 2020, performance fell significantly, with discovered resources falling 65% in 2021 to 6.7 billion boe. The commercial success rate also fell by 11% year-on-year, from 40% to 29%. This is due to a reduced number of >500 mmboe giant discoveries and some unsuccessful game expansion tests in recently opened emergent pools.
The research also confirms that companies with a large share of infrastructure-focused exploration in their portfolios achieved a higher commercial success rate and a more predictable cost of discovery, despite lower discovery sizes. Access to finance also meant that Supermajors and NOCs together accounted for 68% of high-impact well equity in 2021, up from 47% in 2018.
Graeme Bagley, Head of Global Exploration and Evaluation at Westwood, said: “The results of our latest State of Exploration report show a promising outlook for exploration, having rebounded from COVID. -19 and despite significant headwinds against fossil fuel exploration. However, as we move towards a cleaner energy mix, the crucial requirement is low emissions intensity development for all future exploration opportunities.
“Going forward, we will see careful scrutiny of the impact of success stories on the company’s net zero goals, with ESG considerations and time to breakeven becoming increasingly important when it’s about selecting prospects.
The State of Exploration 2022 report is now available to subscribers to Westwood’s Wildcat solution.
Read the latest issue of Oilfield Technology in its entirety for free:https://bit.ly/3u3QP7b” target=”_blank”>Spring 2022
The first 2022 issue of Oilfield Technology begins with an analysis by Wood Mackenzie of the lag between soaring oil prices and growth in U.S. oil production and investment. The rest of the issue is devoted to features covering sand removal technology, soluble frac plug technology, digitalization of offshore operations, annular intervention, oilfield chemicals, subsea compression systems and smart instrument measurement.
Exclusive contributions come from TETRA Technologies, NOV, Archer, Expro, Locus Bio-Energy Solutions, AES Drilling Fluids, MAN Energy Solutions and Winters Instruments.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/26052022/westwood-oil-and-gas-exploration-remained-resilient-in-2021/