Global oil and gas industry on track to worst year of discovery since 1946

A recent report released by Rystad EnergyAn independent energy research and business intelligence company based in Oslo, Norway, reveals that the global energy sector is on track to record its worst year for oil and gas discoveries since 1946.

According to the report, no “major discoveries” have yet been announced in December, and over the course of the year through November, only 4.7 billion boe (barrel) volumes of new discoveries have been reported worldwide.

Rystad Energy syndicates the reduction of investment in exploration and production activities in the era of COVID-19 as the main responsible for this mess.

“While some of the top-rated prospects are slated to be drilled before the end of the year, even a substantial discovery may not be able to contribute to the 2021 volumes discovered as these wells will not be able to be completed in this calendar year. Therefore, the cumulative discovered volume for 2021 is on track to be the lowest in decades, “said Palzor Shenga, vice president of upstream research at Rystad Energy.

Less oil and gas than in 2020

For the Norwegian analytics company, a world leader in the oil and gas industry, the sector is on track to record less than half of last year’s total. As recalled, despite the pandemic and the sharp drop in oil prices, oil and gas companies announced new discoveries worth 12.5 billion boe.

“The monthly average for the year has been low, about 425 million boe. The month of November was especially calm, with only 220 million barrels of oil announced, and December has been almost silent until now, ”the investigation refers.

Rystad Energy: hallazgos en altamar

Rystad Energy points out that offshore discoveries have been the largest source in recent months. For example, Lukoil discovered 75 million barrels of oil and gas off the coast of Mexico.

Also PTTEP of Thailand and Petronas of Malaysia discovered a promising shallow water gas field off Baram province in Malaysia. Finally, Norway continues to produce a steady stream of small offshore finds with development potential.

“Large individual discoveries often make up too much of the annual total. Worldwide, only 900 giant oil and gas fields represent 40% of all discovered oil, and each new giant adds 500 million boe or more to the annual total, “confirmed the consultancy.