Continental and Mediterranean Europe Upstream: 2015 in review and what to look for in 2016
Looking back at the biggest stories in Continental and Mediterranean Europe of 2015, we highlight some of the key regional trends in the E&P sector. We also explore how some of these trends might develop in 2016 and include our view of important events to watch. Continental and Mediterranean Europe’s upstream sector was impacted by the low oil price in 2015. Licensing and exploration drilling activity were both down from 2014 figures. Production decreased by 12% from 2014, the first time it has slipped below 1 bnboe since the 1970s. This was in part caused by the decrease of development capital investment by 17.4% in 2015 from 2014 levels. In the new lower commodity price environment, we do not expect production in the region to recover beyond the billion barrels a year threshold, and indeed we estimate that annual production could fall another 150 million boe by the end of the decade.