25th May 2017
Exploration for hydrocarbons has been a pre-requisite to economic development since the industrial revolution.
Conventional exploration is under attack. With the growth of renewables in the energy mix, the slump in oil prices from the end of 2014 and a 'lower for longer' assumption, conventional explorers are employing different survival mechanisms to navigate a demanding environment.
Reserves Replacement Ratios (RRR) and Reserves to Production Ratios (R/P) appear outdated balance sheet indicators of performance; since 2014, companies are focussed on three major metrics; rate of return, breakeven development costs/barrel and an overall reduction in risk. There has been a shift away from high cost, complex projects with long lead times towards lower cost, lower risk projects.
In this talk, GCA's Rebecca Jones, a Senior Geoscience Advisor, examines the key metrics of change from exploration past to exploration future for a number of exploration companies in different basins of the world, and shows how a radical rethink in exploration strategy is enabling conventional explorers to stay in business.
You can read her presentation below, or download a copy here:
You may also be interested in the following talks given at GCA's 2017 'Value Creation' seminar at London's IMechE.
- GCA Oil & Gas Monitor
- Latin America
- North America
- Asia-Pacific & China
- Middle East
- Russia & Caspian
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