Stalled Oil and Gas Exploration a Major Economic Risk

By Joseph R Fonseca
Friday, March 9, 2018

The latest Australian Bureau of Statistics (ABS) exploration data confirms that the slump in petroleum exploration in Australia continues.

“Yesterday, the ABS released data for 2017, confirming that exploration in Australia is stalled.  Exploration expenditure is well below trend, especially in offshore basins, said APPEA Chief Executive Dr Malcolm Roberts.
“Falling exploration activity has been evident for many years but the latest offshore expenditure numbers are alarming.   Offshore activity has fallen to its lowest level since 2004.  Other sources show that only five exploration and appraisal wells were drilled offshore in 2017.
“This situation is happening despite deep cost-cutting by the industry.  Companies have almost halved the cost of exploration wells, putting downward pressure on prices and squeezing more activity from tight budgets.
“Industry is doing all it can to revive exploration, given tough market conditions. Onshore exploration is recovering but offshore activity is still falling.
“If this trend continues, Australia risks missing its moment to capitalise on rising global demand for energy.  Australia has an exciting opportunity, with regional demand for liquefied natural gas set to almost triple in the next 20 years.
“All governments should be alarmed by the trend of falling exploration.  The community owns the resources and needs to attract risk capital to discover and convert resources into jobs, revenue and export dollars.
“The community should be concerned if governments squander the opportunity to secure a return from public resources.
“Some governments understand this simple proposition.  The industry welcomes the leadership being shown by Queensland, South Australia and the Commonwealth.
“Governments can always complain about gas prices but they should also be doing what they can to encourage new supply.
“The evidence is irrefutable. Falling exploration is a longstanding problem that must be urgently tackled.”
Categories: Finance Energy Fuels & Lubes Offshore Energy Shale Oil & Gas

Related Stories

Borr Drilling Bags Three New Assignments for its Jack-Up Drilling Rigs

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Woodside Inks Long-Term LNG Supply Deal with China Resources

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Tokyo Gas Enters LNG Market in Philippines

Eco Wave Finds Partner for Wave Energy Project in India

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

Japan's Mitsui Eyes Alaska LNG Project

Santos Hires Weststar-GAP for Timor-Leste Offshore Helicopter Services

European LNG Imports Up with Asian Influx

Current News

Shell-Reliance-ONGC JV Complete India’s First Offshore Decom Project

The Future of Long-Idle Drillships: Cold-Stacked or Dead-Stacked?

TMC Books Compressors Orders for FPSO and LNG Vessels

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com