Survey snapshot of exploration

Scottish energy consultancy Wood Mackenzie (WoodMac) says global oil and gas exploration in mature basins remains focused on high-margin, low-cost and near-field prospects.

The firm surveyed 200 senior exploration leaders and professionals to get a clearer picture of exploration as signs of a recovery emerge.

Edinburgh-based WoodMac said: “It comes as no surprise to hear that companies will continue to explore low-cost opportunities in 2017.

“NOCs (national oil companies) will put more emphasis on growth and higher exploration impact, while value creation, capital efficiency and returns on investment are all high on the priority list.”

Andrew Latham, vicepresident of exploration research, added budget constraint was still the top issue, with “opportunity availability and portfolio strength beginning to increase in importance”.

Most of the people surveyed believed unconventional exploration needed further price support.

The annual poll asked for views on the role of exploration versus other growth options, the approaches companies were taking and the challenges that need to be overcome. Conventional exploration and increased recovery from existing assets were the “top resource capture options”.

Mr Latham said: “Value creation remains the most important metric to demonstrate performance, followed by capital efficiency and returns on investment.

“The industry increasingly sees the majors as important explorers.”