Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Exploration to increase in 2018 but investment constraints remain

    Exploration to increase in 2018 but investment constraints remain

    January 18, 2018
    Share
    Facebook Twitter LinkedIn WhatsApp
    *A general view of the BP ETAP (Eastern Trough Area Project) oil platform in the North Sea. Photo by Andy Buchanan – WPA Pool/Getty Images.

    18 January 2018, Houston — Exploration activity will increase in 2018, but market uncertainty and the need to manage debt levels will remain key constraints to investment.

    That is the view of oil and gas analysts at BMI Research, who highlighted that a recent three-year downturn had forced exploration and production (E&P) companies to reduce spending and improve cost management.

    The sector is benefiting from a resurgence in cash flow amid higher oil prices and E&P companies are preparing to ramp up activity this year to expand their portfolio, targeting a number of new frontier markets, according to BMI.

    Despite increasing confidence, however, E&P companies will continue seeking a balance between increasing spending on new projects, reducing leverage and increasing shareholder distributions, BMI analysts said in a brief research note sent to Rigzone.

    “We believe that spending caution will prevail over the coming months as companies maintain financial discipline,” the analysts stated.

    BMI’s prediction follows news that global conventional discoveries hit a record low in 2017, coming in at less than seven billion barrels of oil equivalent (boe), according to Rystad Energy.

    This was the lowest figure since at least 2012, Rystad highlighted when 30 billion boe was discovered around the globe. The total volume of global conventional discoveries stood at 16 billion boe in 2013, 15 billion boe in both 2014 and 2015, and eight billion boe in 2016.

    “We haven’t seen anything like this since the 1940s,” Sonia Mladá Passos, senior analyst at Rystad Energy, said in an organization statement in December 2017.

    “The discovered volumes averaged at [around] 550 million barrels of oil equivalent per month. The most worrisome is the fact that the reserve replacement ratio in the current year reached only 11 percent (for oil and gas combined), compared to over 50 percent in 2012,” Passos added.

    *Andreas Exarhease – Reuters

    Related News

    US oil and gas rig count falls to lowest since January – Baker Hughes

    Crude oil rebound reflects optimism over the U.S.-China dialogue

    Stakeholders hail PINL’s achievements in protecting TNP

    E-book
    Resilience Exhibition

    Latest News

    Nigeria unlocks intra-African trade with new PAPSS policy boost

    May 10, 2025

    Ahead of China-US talks, Trump says 80% tariff ‘seems right’

    May 10, 2025

    US oil and gas rig count falls to lowest since January – Baker Hughes

    May 10, 2025

    Nigeria’s Senate passes tax reform bills to boost government revenue

    May 10, 2025

    E-Call up is desirable in Onne ports – Truckers

    May 10, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.