Exploration – The impact of lower oil prices on exploration budgets has been felt with a 35% reduction in exploration drilling and a 63% fall in discovered volumes. Licensing activity also fell dramatically, with many regional governments now looking at how to improve their offerings in order to secure future investment. Development - Reduced corporate cash flows have led operators to cut development drilling, reduce investment in mature fields and postpone new investment decisions. Upstream development expenditure in Asia-Pacific fell 23% to US$99 billion in 2015, and is set to fall further in 2016 as a number of Australian LNG projects reach completion. Corporate - The gap between buyers and sellers price expectations led to a depressed Asia-Pacific M&A market in 2015. However, as the industry adapts to a 'lower for longer' outlook, companies are coming under increasing pressure to reshape their portfolios for the new price environment.