Global Oil, Gas Exploration Spending Rises in 2023 But Discovered Volumes Falling - Rystad

MOSCOW (Sputnik) - Spending on conventional oil and gas exploration could exceed $50 billion this year, reaching the highest figure since 2019, but despite rising investment, the number of discovered fields is decreasing, Norwegian energy research and business intelligence company Rystad Energy said on Wednesday.

"Spending on conventional oil and gas exploration is growing and expected to top $50 billion this year, the highest since 2019, but operators are still waiting for the results they had hoped for," the company said in a statement.

"Rystad Energy research shows that despite the rising investments, discovered volumes are falling to new lows."

The statement added that companies discovered 2.6 billion barrels of oil equivalent (boe) in the first half of 2023, which is 42% lower than during the same period last year. In particular, 55 fields were discovered, compared to 80 in the first six months of 2022.

"This means discoveries in 2023 have averaged 47 million boe, lower than the 56 million boe per discovery for the same period in 2022," the company noted.

At the same time, exploration companies seeking to capitalize on increased demand for fossil fuels and find additional oil and gas resources are prioritizing high-risk and costly offshore developments, the statement read.

Six major oil and gas companies - ExxonMobil, BP, Shell, TotalEnergies, Eni and Chevron - are expected to spend about $7 billion on exploration in 2023, up about 10% compared to 2022, the statement said.