×

We are excited to announce that as of February 1, Wood Mackenzie is a portfolio company of Veritas Capital, a leading investor at the intersection of technology and government. Our focus remains on providing you with the best intelligence, analytics, data and tools to ensure you are making the best data-driven business decisions with confidence.  

Read more in our news release here. 

;

Discuss your challenges with our solutions experts

Contact an Expert

Submit your details to find out more about how we can help you and your organisation

For details on how your data is used and stored, see our Privacy Notice.

 

Opinion

The future of exploration: Big wells mainly in deepwater and frontiers

In the second part of his three-part series alongside EAGE in Copenhagen, Andy Latham highlights our 'wells to watch' in 2018

1 minute read

Andrew Latham

Vice President, Energy Research

With his extensive exploration expertise Andrew shapes portfolio development for international oil and gas companies.

View Andrew Latham's full profile

Over the next few years, we expect most of the 'wells to watch' will be operated by the Majors and a handful of bolder independents. And we expect, as has been the case throughout the downturn, the best discoveries to come from newly-proven plays and frontiers, with again, more than half of all volumes being found in deepwater.

Exploration risk tolerance should strengthen and the average exploration well success rates that have been trending down from around 40% to 35% over the past decade, might start to increase, perhaps back up to 35-40%, reflecting fewer very-high-risk wells.

With budgets likely to remain tight, prospects with less than a one in ten chance of success are unlikely to be drilled. We'll be watching many wells around the world with potential to open new plays or add large volumes. These will likely include:

  • Africa: Gambia (FAR), Namibia (Tullow), Senegal (BP, Kosmos) and South Africa (Total).
  • Americas: Aruba (Repsol), Brazil (Petrobras, Total), Canada Nova Scotia (BP), Guyana (ExxonMobil), Mexico (Pemex, Total) and Peru (Karoon).
  • Europe: Cyprus deepwater (Eni), Montenegro’s Adriatic Sea (Eni), Norway’s Barents (Statoil), and potentially offshore Portugal (Eni).
  • Rest of the World: Papua New Guinea (Total) and Russia Sakhalin (Gazpromneft).

New discoveries by sector

Find out how our Exploration Service, which includes the Exploration Well Tracker, can help you evaluate the wells to watch.

Related content