The Exploration Conundrum

Oil companies made huge cuts in their exploration budgets during the 2015-17 industry downturn, canceling or postponing up to $1 trillion overall in scheduled and planned projects. At the same time, success rates for international exploration dropped to 50-year lows. The outlook for future reserves has stumbled, if not tumbled.

Please log in to read the full article

Comments (1)

Exploratiion IRR
a 15 to 20 % IRRR is not very good but necessary onmegaprojects. Only majors can operate at such a low IRR. Smaller projects will return 25-30 % IRR routinely. Smaller projects do not mjove the reserves leddle as much as megaprojects. Thus more smaller projects brought to completion in the saame time that one megaproject is complete must be the norm.
10/6/2018 10:53:57 PM

You may also be interested in ...