Fewer large discoveries in 2021, report finds
Offshore staff
LONDON — High-impact drilling last year delivered weaker returns than in 2020, according to analysis from Westwood Global Energy Group.
The total discovered reserves were 65% lower at 6.7 Bboe, while the commercial success rate was down to 29%, compared with 40% in 2020.
There were fewer large discoveries (>500 MMboe), and certain play extension tests in recently proven basins were not successful.
Companies with largely infrastructure-led exploration in their portfolios delivered better results at a more predictable finding cost, despite lower discovery sizes.
Supermajors and national oil companies collectively accounted for 68% of high-impact well equity in 2021 compared to 47% in 2018, Westwood added.
“The results of our latest State of Exploration report present a promising outlook for exploration, having bounced back from COVID-19 and despite significant headwinds against exploration for fossil fuels," said Graeme Bagley, head of global exploration and appraisal. “As we stride toward a cleaner energy mix, however, the crucial requirement is for low-emissions intensity developments for all future exploration opportunities.
“Looking ahead, we’ll be seeing scrutiny of the success case impact on company net-zero targets, with ESG considerations and the time to break even becoming increasingly important when it comes to prospect selection.”
05.26.2022