Statistical data from the world’s energy sector for the year 2022 showed that new global oil and gas discoveries have created the industry’s greatest value over the last decade in terms of oil and gas exploration, with investments in the order of $33 billion to a base price of $60/BBL, which could generate cyclical returns of 22%.
This boom in hydrocarbon exploration was led by major discoveries in Namibia, Guyana, Brazil and Algeria.
Exploration companies were able to generate very high value through strategic selection and focus on the best and biggest and potential customers. The discoveries have brought higher quality hydrocarbons to the companies’ portfolios, allowing them to reduce carbon emissions and replace less advantageous oil and gas supplies, while also meeting the world’s energy needs.
The highest value came from world-class discoveries in a new Deepwater play in Namibia, as well as resource additions in Algeria and several new Deepwater discoveries in Guyana and Brazil, where the last wave of pre- salt finally succeeded.
The average discovery last year was over 150 MMBOE, more than double the average for the last 10 years.
In 2022, exploration well numbers were less than half the numbers during pre-pandemic years, but total discovered volumes of 20 BBOE matched the 2013-2019 average annual volumes.
Despite uncertainties in long-term oil demand, companies are accelerating oil exploration in order to meet short- and medium-term demand, while gas exploration has focused on geographies that can supply the European market that is plunged into an energy crisis.
It is estimated that liquids accounted for 60% of new resources discovered, which is the 3rd time in 20 years that liquid resources make up the majority of new discoveries.
By 2030, accelerated development of these new discoveries could deliver 1 MBPD and 0.5 MBOPD of natural gas, generating $15 billion in free cash flow.
Furthermore, the exploration sector continues to be dominated by national oil companies (NOCs) and major oil companies such as TotalEnergies, QatarEnergy and Petrobras, which lead the way in new net resources discovered in 2022.
NOCs and large multinationals accounted for nearly 3/4 of new resources discovered.
