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May 9 2017
May 9 2017
(Aberdeen, UK) – 09 May 2017 – Westwood Global Energy Group (WGEG) today launches its eighth annual State of Exploration Report, the definitive global benchmark for conventional oil & gas exploration1. The most detailed report of its kind, it covers five years of global high impact exploration and also benchmarks the performance of 40 international E&P companies and 991 completed conventional wildcat wells at a total drilling cost of $43.5bn.
Amongst its key conclusions, it reveals that:
Dr Keith Myers, President, Westwood Research, comments: “If the industry is out of the emergency room in 2017, it is not yet out of hospital. Even if oil prices recover further, explorers will need to focus on finding low cost oil and gas profitable to develop at $40 per barrel or less.
“Companies will need to believe they have the acreage portfolio, technology, people and processes to deliver exceptional performance. This means an efficient exploration process with larger prospect portfolios and fewer, better wells targeting bigger prospects at higher commercial success rates.”
“The industry is emerging leaner and fitter from this latest down-cycle, but it must be able to remain disciplined during the bull oil market to come (whenever that might be). Decreased competition means lower access costs for exploration acreage and more opportunity to create value from exploration for the accomplished explorer.”
The State of Exploration report is available to purchase in hard copy and digital formats.
1 The State of Exploration Report was originally produced under the name of Richmond Energy Partners, which is in the process of re-branding to its parent company, Westwood Global Energy Group.
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