Insight
Exploration alchemy: sustaining ingredients for recent success
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
We identified four key ingredients for exploration's recent return to profitability: high proportion of oil in commercial volumes; low exploration spend; strong performance of deepwater, and low government share. By analysing our forward-looking tools, we predicted whether these trends would continue, and why. Oil will continue to be the main focus for explorers in the next 5-10 years. Spend will tick up but remain well below the highs of the boom years. Deepwater will sustain its outperformance in the near to medium term. Government share will rise.
Table of contents
- Executive Summary
- Making more from less
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Will oil continue to dominate?
- Will exploration spend continue to trend lower?
- Will deepwater sustain its recent outperformance?
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Will government share continue at current low rates?
- Conclusion
Tables and charts
This report includes the following images and tables:
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Volumes discovered and full-cycle rates of returnFull-cycle IRR by settingDevelopment value, discovery and development costs of commercial discoveries
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Future exploration in oil-prone vs gas-prone basinsAverage discovery size by settingSuccess rates by setting for commercial and economically viable discoveriesProspect discovery and development cost rangesProspective volume, future value creation and prospect average sizeGovernment share of full-cycle valueGovernment share by maturity 2009-2018Planned exploration wells to end-2020 by maturity index and water depthBreakeven components of key prospects
- 3 more item(s)...
What's included
This report contains:
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