Contrary to the Aspirations of the “Greens”, an Increase in Geological Exploration for Oil and Gas is Predicted
Oil and gas exploration spending will recover and average $22 billion a year over the next 5 years, Wood Mackenzie says
The growth of exploration work will occur due to the need to bring new hydrocarbon deposits into operation.
It is noted that in 2006-2014, exploration experienced a boom, its spending peaked at $79 billion. But in the previous 6 years, the average was $27 billion per year. At the same time, Wood Mackenzie argues that although spending will increase, they will not return even close to past highs, and most likely their growth will be limited.
This is due to the lack of high-quality promising projects that would meet today’s economic and ESG metrics.
However, the largest growth will be in the Atlantic coast of Africa and in the Eastern Mediterranean, as well as in some new undefined areas.
At the same time, the publication forgets that the peak of the growth of geological exploration fell on the “hottest time” in the development of American shale. Apparently, now no one believes that the sector will restore its former greatness.
