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.