Exploration of oil in the world fell to the lowest level in 70 years

Exploration companies in 2015 found only 2.7 billion barrels. oil is the smallest rate since 1947, according to estimates by consulting company Wood Mackenzie. According to her, in 2016, as at the end of July were proven reserves of oil with a volume of 736 million barrels, reports Bloomberg.

In just two years global investment in oil exploration (seismoreceivers prior to drilling declined from $100 billion to $40 billion, said Vice-President of Wood Mackenzie Andrew Latham. According to the company, investment in exploration is likely to remain at this low level until 2018. The share of exploration costs in the oil and gas industry has traditionally accounted for 18%, in 2016 it will drop to 13%, said Latham.

According to estimates by Wood Mackenzie, from the beginning of 2016 in the world was drilled 209 new wells (in 2015, by August this figure was equal to 680 wells in 2014 — 1167). Thus, according to the company, since 1960, the average number of new wells that appear for the year amounted to 1.5 thousand

According to forecasts from the US Department of energy, world demand for oil will increase from 94.8 million barrels. a day in 2016 to 105,3 million barrels. in 2026-m.

According to senior project Manager a reputable consulting company in the field of energy Rystad Energy Niels-Henrik Bertram, the volumes of oil exploration in the area of conventional production has reached “the bottom”.

In the future, according to Bertram, it will severely affect the supply of oil and gas. The expert believes that the effect of insufficient investment in exploration of new deposits will be felt by 2025 — explored new volumes will be able to compensate for only about 5% of the oil consumed in 2016. Today, world oil reserves are in abundance due to large production volumes from Russia and OPEC, Bloomberg reported.

The effect of the slowdown in exploration has already been felt by some companies. In February 2016, ExxonMobil announced that for the first time in 22 years the new deposits will not be able to reimburse 100% the company produced the oil. Company for three years decreased the cost of exploration and production with $42.5 billion in 2013 to $23 billion in 2016. Another major U.S. oil company, Chevron, for the same period has reduced capital expenditures from $41.9 billion to $25 billion, According to estimates by Wood Mackenzie in mid-June of 2016, the total cost reduction in upstream reaches $1 trillion.