Oil and gas discoveries fell last year to a record low of 5 billion barrels of oil equivalent, while exploration spending nearly doubled.
According to the Gas Exporting Countries Forum, 60% of the total 5 billion barrels corresponded to new oil discoveries and the rest to gas discoveries.
This total compares with new discoveries of 10.5 billion barrels of oil equivalent in 2022, the report noted, supporting OPEC’s arguments that the industry is not investing enough in new oil and gas supplies despite the Increased demand.
OPEC has attributed this trend to the slowdown in investment by forecasters and governments favorable to the transition.
Most likely, the expense problem also influenced the lower investment rate. The GECF reported that the exploration cost per barrel of oil equivalent increased last year to $5.30 for natural gas, up from $2.60 the previous year.
In the case of oil, Exploration costs also increased sharplyfrom $3.50 per barrel of oil equivalent in 2022 to no less than $8.80 per barrel, according to the GECF.
This could be due to the areas where most of the new discoveries are occurring: deep-water marine blocks.
According to the GECF, 41% of new discoveries last year were made in ultra-deep waters and another 30% in deepwater sectors.
Regarding geographical distribution, most of the new discoveries in 2023 were made in Asia, with 32%, followed by Latin America, with 21% of all new oil and gas discoveries. Europe and Africa tied for third place, with a share of 11% each.
Rising exploration prices and difficulties in finding new oil and gas deposits may further discourage investment growth in the sector, accentuating concerns, already regularly expressed by OPEC, of an imminent structural deficit in the oil markets, while oil demand remains on a growth path.
