In the first half of this year, the world's conventional oil and gas reserves discovered fell to a new low

Despite the increasing global investment in conventional oil and gas exploration in the first half of this year, discovered oil and gas reserves have fallen to a new low, as reported by the American drilling website on August 8, 2023.

Rystad, Norway's leading energy research and business intelligence company, highlighted the point in a new report sent to U.S. drilling websites, adding that its estimates show that global explorers discovered 2.6 billion barrels of oil and gas equivalent in the first half of this year, which Rystad said was 42% less than the 4.5 billion barrels of oil equivalent oil and gas reserves discovered in the first half of last yearIn a press release, Rystad revealed that 55 new discoveries were made globally between January and June this year, "compared to 80 in the first half of last year". In a press release, Rystad noted that this means an average of 47 million barrels of oil equivalent per new discovery this year, down from 56 million barrels of oil equivalent in the same period last year.

In a press release, Rystad said the explorer was prioritising the offshore sector "in the search for new resources". In a press release, Rystad highlighted that the offshore sector accounts for around 95% of total exploration spending so far this year, but only about two-thirds of discovered reserves.Rystad revealed that global conventional exploration spending is expected to exceed US$50 billion this year. This figure was below $50 billion last year and just over $40 billion in 2021.Aatisha Mahajan, vice president of upstream research at Rystad, said in a company statement: "Upstream companies are facing a period of uncertainty. ”Mahajan added: "Upstream companies are keen to capitalise on the growing demand for fossil fuels and look for more resources, but the recent results have not been encouraging. ”"If exploration continues to deliver impressive results for the remainder of the year, this year could break new all-time highs for the wrong reasons." Mahajan continued.

Large reserves, offshore discovery rankings and high-impact wells

Guyana has so far led the way in terms of oil and gas reserves discovered this year, at 603 million barrels of oil equivalent, Rystad said in a press release. Turkey ranked second with 380 million barrels of oil equivalent, Nigeria ranked third with 296 million barrels of oil equivalent and Namibia ranked fourth with 287 million barrels of oil equivalent, according to Rystad, stressing that these estimates have the potential to increase "as we better understand the reserves".In a press release, Rystad noted that offshore discoveries are relatively evenly distributed across ultra-deepwater, deepwater and continental shelves. Mr Rystad added that exploration activity is expected to increase for the remainder of the year, particularly in the ultra-deepwater market, which "is expected to grow by 27% compared to last year".In a press release, Rystad listed the top 15 basins for offshore drilling activity from January to June this year. According to statistics, the U.S. Gulf of Mexico deepwater ranks first, the Norwegian/U.K. Viking graben ranks second, and Mexico's Suret Basin ranks third.Rystad said in a press release that its research shows that 31 high-impact wells are expected to be drilled globally this year. To date, 13 high-impact wells have been drilled, six are in progress and 12 are still in the pipeline, Rystad added, adding that "of the 13 completed high-impact wells, only four have encountered hydrocarbons with a success rate of just 31%".

Exploration spending by oil majors

ExxonMobil, BP, Shell, TotalEnergies, Eni and Chevron expect to spend about $7 billion on exploration this year, Rystad said at the launch, adding that this is about 10% higher than last year.Rystad noted at the press conference that forecasts show that major oil companies will account for around 14% of total global exploration spending in the coming months. However, Rystad revealed in a press release that more than half of global exploration spending is expected to come from national oil companies and national oil companies with international portfolios this year.

In May, Rystad noted in a statement posted on its website that concerns about global energy reliability were triggering a surge in oil and gas investment, but warned that the increase was only temporary."Global investment in fossil fuels surged by $140 billion last year and this year following the geopolitical conflict," Rystad said in a statement. ”

"Total spending was estimated at $945 billion in the two years leading up to last year, but projected spending has jumped to nearly $1.1 trillion due to war-related shortages and soaring prices," Rystad added. ”"Of the $140 billion increase, shale production has attracted most of the attention with an additional expense increase of $80 billion, an increase of 30 percent, and spending on oilfield services has risen by almost 50 percent. Spending on offshore production increased by $40 billion, while spending on other land-based activities increased by $20 billion. ”

2022 was a year of outstanding performance

In January, Wood Mackenzie said in a statement posted on its website that 2022 was the strongest year for the global oil and gas exploration industry in more than a decade."Wood Mackenzie's Oil and Gas Exploration: A Year in Review 2022 report notes that the number of exploration wells in 2022 was less than half of what it was in pre-pandemic years, but total production of 20 billion barrels of oil equivalent was comparable to the average annual production from 2013 to 2019," Wood Mackenzie said in a statement. ”Julie Wilson, director of global exploration research at Wood Mackenzie, noted in a statement: "2022 was a year of outstanding performance in the exploration sector. ”"Sales are good, but not particularly good. However, explorers are able to reap extremely high value through strategic selection and a focus on the best and largest prospect structures. ”Wilson continued: "These findings bring higher quality hydrocarbons to businesses' portfolios, allowing them to reduce carbon emissions by displacing less favorable oil and gas supplies, while also meeting the world's energy needs. ”