Brent (a benchmark for Angolan exports) for delivery in April started this week’s session (yesterday 21st February) on a high, at US$83.53 a barrel, i.e. 0.53 percent more compared to the close of markets on Friday. fair. Oil showed a daily range of 82.75 – 84.30 dollars.
On Friday 17th feb, Brent crude fell $2.14, or 2.5 percent, to $83.00 a barrel, ending the week down 3.96 percent, as traders worried that future rises in interest rates in the United States of America could weigh on demand.
Industry valuation
Statistical data from the world energy sector for the year 2022 showed that new global discoveries of oil and gas created the highest industry value in the last decade in terms of oil and gas exploration, with investments in the order of 33 billion dollars at a base price of USD 60/BBL, which could generate cyclical returns of 22 percent.
This boom in hydrocarbon exploration was led by major discoveries in Namibia, Guyana, Brazil and Algeria. Exploration companies have managed to generate very high value through strategic selection and focus on the best, 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.
In 2022, exploration well numbers were less than half the numbers during the pre-pandemic years, but the 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 percent 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 provide 1 MBPD (Million Barrels Per Day) and 0.5 MBOPD (Thousand Barrels Of Oil Per Day) of natural gas, generating $15 trillion in free cash flow.
Furthermore, the exploration sector continues to be dominated by national oil companies (NOC) and major oil companies such as TotalEnergies, QatarEnergy and Petrobras, which lead the way in new net resources discovered in 2022. NOC and large multinationals accounted for almost 3/4 of new resources discovered.
