Oil and gas discoveries decline to record low in global markets

Oil and natural gas discoveries in global markets fell to a record low of 5bn barrels of oil equivalent last year, while exploration costs almost doubled.

According to a compilation from the Gas Exporting Countries Forum's (GECF) annual natural gas report for 2024, global natural gas and oil discoveries fell by more than 50% last year compared to the previous year.

Of the total 5bn barrels of oil equivalent to gas and oil discovered last year, 60% was oil, and the remaining 40%, equivalent to 340 billion cubic meters, was natural gas.

This figure represents a record 50% decrease compared to the discovery of 10.5bn barrels of oil equivalent in 2022.

According to the GECF, last year's low exploration volumes led to a significant increase in exploration costs for both natural gas and oil.

Natural gas exploration costs rose from $2.60 per barrel of oil equivalent in 2022 to $5.30 last year. The cost of oil exploration increased from $3.50 per barrel of oil equivalent in 2022 to $8.80 last year.

The report cites the “disappointing results from some key offshore exploration wells, despite an increase in exploration investment to $60bn in 2023.”

While offshore exploration accounted for 74% of total discoveries last year, in 2022 this was significantly higher at 87%.

Ultra-deepwater exploration accounted for the largest share of offshore exploration at 41%, followed by deepwater exploration at 30%.

The GECF reported that additional challenges are facing global exploration activities, with high-value discoveries in more challenging geographical locations costing more than onshore or continental shelf exploration.

On a regional basis, Asia Pacific accounted for the highest share of oil and gas volumes discovered in 2023 at 32%, driven by exploration success offshore Indonesia and Malaysia. Latin America followed with 21%, Europe and

Africa with 11% each, and the Middle East with 10%.

On a country-wide basis, Indonesia dominated offshore gas discoveries in the Larayan and Geng North fields in 2023, followed by major gas discoveries in the Sarawak field offshore Malaysia. New oil discoveries in the Lancetfish and Fangtooth fields offshore Guyana, as well as Türkiye's onshore discovery in the Sehit Aybuke Yalcin well, marked some of the most important discoveries.