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17 Pages

BHP Billiton oil and gas exploration summary


BHP Billiton oil and gas exploration summary

Report summary

BHP Billiton (BHP) reacted swiftly to the collapse in oil price by increasing capital efficiency, accelerating asset high-grading and making cuts across the business. It is using the down-cycle to address weaknesses in its portfolio, in particular a lack of greenfield deepwater and international development opportunities. Strategic priorities include delivering on a bold counter-cyclical exploration strategy. BHP has two heartland conventional E&P regions – the NW Shelf of Australia and the deepwater US Gulf of Mexico. A third core region is now US unconventionals, with substantial positions in the Haynesville, Eagle Ford and Permian Basin plays. BHP's conventional exploration has underperformed, but the company is committed to turning this around, securing new acreage and rigs, and maintaining spend. This counter-cyclical acceleration of its drilling programme contrasts with the average fall of 48% in exploration spend between 2014 and 2016 for the other companies in our coverage.


What's included?

This report includes 2 file(s)

  • BHP Billiton oil and gas exploration summary PDF - 617.34 KB 17 Pages, 6 Tables, 18 Figures
  • BHP Billiton.xls XLS - 575.50 KB

Description

Affected by supply and demand, the economy of individual countries and technological breakthroughs, oil and gas exploration is an industry in constant motion. The high costs of finding and developing new oil and gas fields that can be commercially developed has created a challenging atmosphere, with explorers increasingly seeing low returns, low value and slow progress.

This Exploration Summary report quantifies the company's exploration volume and value performance over the past 10 years, and reviews its outlook for future success.

Businesses can use this report to get a detailed analysis of this company, what exploration areas they're involved in, what wells to watch and how well placed they are. It will help you understand company performance and shows how the best explorers have achieved their success.

Wood Mackenzie benchmarks exploration results for over 40 companies. Our analysts provide accurate information on the cost of exploration compared to the value of discoveries so that you can develop profitable strategies. We are the established global industry standard for oil and gas exploration performance.

  • Executive summary
  • Strategy
    • Upstream strategy
    • Exploration outlook
    • Evolution of exploration strategy
  • Investment and costs
  • Exploration
    • Well data
  • Reserves and resources
    • Scope of this report
  • Production
  • Valuation
    • Exploration underperformance relative to peers
    • Modest success in the two heartlands
    • Heartlands success has not yet been replicated elsewhere
    • Late entry into unconventionals proves costly but is improving

In this report there are 24 tables or charts, including:

  • Executive summary
    • Basins drilled and all conventional & organic unconventional discoveries 2006-2015
    • Ten year performance summary
  • Strategy
    • SWOT grid
    • Net active exploration acreage by water depth
    • Net active exploration acreage by country
  • Investment and costs
    • Exploration & appraisal spend and reinvestment
    • Exploration & appraisal spend by water depth
    • Exploration & appraisal spend by basin maturity
    • Discovery costs by water depth
  • Exploration
    • Gross conventional exploration & appraisal wells by basin and sector
    • Exploration wells drilled and spend per well
    • Exploration success rates
  • Reserves and resources
    • Discoveries (2006 to 2015)
    • Key organic unconventional plays
    • Volumes discovered by year
    • Volumes discovered by water depth
    • Volumes discovered by country
    • Volumes discovered by basin
  • Production
    • Production from new field discoveries and organic unconventionals, and as a proportion of all future production
  • Valuation
    • Full-cycle economics
    • Full cycle value creation by year, with uncons
    • Exploration returns by year, with uncons
    • Costs and development value by reserve category
    • Exploration returns by water depth
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