Global oil and gas discoveries in 2021 are on track to hit their lowest full-year level in 75 years, according to research from Rystad Energy.
Global oil and gas discoveries in 2021 are on track to hit their lowest full-year level in 75 years, according to research from Rystad Energy.
As of the end of November, total global discovered volumes for 2021 were calculated at 4.7 billion barrels of oil equivalent (boe) and, with no major finds announced in December at the time of writing the industry is on course for its worst discoveries toll since 1946. This would also represent a considerable drop from the 12.5 billion boe discovered in 2020.
Liquids continue to dominate the hydrocarbon mix, making up 66% of total finds. Seven new discoveries were announced in November 2021, representing around 219 million boe of new volumes. The monthly average of discovered volumes this year now stands at 424 million boe.
‘Although some of the highly ranked prospects are scheduled to be drilled before the end of the year, even a substantial discovery may not be able to contribute towards 2021 discovered volumes as these wells may not be completed in this calendar year. Therefore, the cumulative discovered volume for 2021 is on course to be its lowest in decades,’ said Palzor Shenga, vice-president of upstream research at Rystad Energy.
The largest discovery in November 2021 was Lukoil’s Yoti West off the coast of Mexico, which is estimated to hold around 75 million boe of recoverable resources. However, these volumes are still insufficient for commercial development and would require further discoveries of a comparable scale before a development concept could be drawn up. Several wells offshore Mexico are scheduled to be drilled in blocks offered in various bid rounds, many by leading international oil companies.
Offshore Malaysia, Nangka-1 became the second successive exploration well drilled within Block SK 417. The wildcat well was drilled by Thai state operator PTTEP to a depth of 3758 m and discovered sweet gas within the Middle to Late Miocene Cycle VI clastic reservoirs.
Rystad also noted that Norway continues to make small-to-medium discoveries. which can be tied to existing infrastructure.
