Global spending on conventional oil and gas exploration will hit over $50 billion in 2023, according to energy research company Rystad Energy.
Upstream companies are strategically directing their investments towards offshore projects, focusing on lucrative regions that have a robust geological understanding.
Rystad Energy says that up to 95% of the total expenditure in 2023 is allocated to offshore initiatives.
“Upstream companies are facing a period of uncertainty. They are eager to capitalize on the increased demand for fossil fuels and find additional resources,” Aatisha Mahajan, vice president of upstream research, Rystad Energy, said in a report.
Global majors, including ExxonMobil, bp, Shell, TotalEnergies, Eni and Chevron, and National Oil Companies are expected to account for over half of the spending with the majors directing a total $7 billion in exploration projects in 2023.
In terms of discoveries made owing to 2023 investments, Guyana, Nigeria and Namibia are the top three countries with the highest reserves discovered, according to the research firm.
