What companies’ wildcats reveal about their oil and gas outlooks
Most large oil and gas companies are at pains to stress their readiness for an accelerated energy transition. They are also busy with plans to drill over 130 high-impact exploration wells in deepwater alone. Many other 2022 wells will test large standalone prospects in shelf and onshore plays. These are long-dated investments. By analogy with the pace of commercialisation of some of the most-celebrated discoveries of recent years, 2022’s wildcats will take at least 10-12 years to achieve payback. Big explorers are betting on strong oil and gas demand, with prices to match, lasting until 2035 and beyond.