Global oil and gas discoveries fell to record lows last year
According to Oil Price Network, global oil and gas discoveries dropped to a record low of 5 billion barrels of oil equivalent last year, while oil and gas exploration costs nearly tripled. This is the latest statistic from a recent report released by the Gas Exporting Countries Forum (GECF). Turkey's Anadolu news agency cited the statistics and reported that of the newly discovered oil and gas reserves of 5 billion barrels of oil equivalent, 60% are oil reserves and 40% are natural gas reserves.
The report said that compared with the 10.5 billion barrels of new oil and gas reserves discovered in 2022, the 2023 data supports OPEC's view that despite growing demand, the oil and gas industry is not investing enough in new oil and gas supplies. OPEC blames the trend on support for the energy transition and disincentives on oil and gas investment.
Cost issues may also be one of the reasons for low investment in oil and gas. The report stated that natural gas exploration costs will rise to US$5.3/barrel of oil equivalent in 2023 from US$2.6/barrel of oil equivalent in 2022.
Data from the Natural Gas Exporting Countries Forum show that oil exploration costs have also risen sharply in 2023, from US$3.5/barrel in 2022 to US$8.8/barrel. This may be because most of the new discoveries are in the deep ocean. 41% of new discoveries in 2023 will be in ultra-deep water areas, and the other 30% will be in deep water areas.
In terms of geographical distribution, Asia will account for the largest proportion of newly discovered oil and gas reserves in 2023, accounting for 32%; followed by Latin America, accounting for 21%; Europe and Africa are tied for third, accounting for 11% each.
Higher exploration costs and challenges in finding new oil and gas resources may further inhibit investment growth in the oil and gas industry, increasing OPEC's concerns about an impending structural deficit in the oil market, while global oil demand is still largely growing.
