Related Articles
Outlook 2017
Forward article link
Share PDF with colleagues

Post-traumatic efficiencies in order

In 2017, the E&P sector needs to sharpen its focus. A price recovery, when it comes, will only reward low-cost explorers

The exploration and production industry has faced a toxic combination of plunging oil and gas prices, a legacy of cost inflation, and high levels of debt, weak exploration performance, and low public trust. This should be plain to everyone. A trend of diminishing returns was already apparent in the $100+ era when the industry grew fat and happy. The excesses of the $100-plus oil era have left the upstream industry badly exposed in a $40-a-barrel world, with severe strain to company balance sheets and producer-country budgets. The UK is but one example. There, despite higher production, tax returns turned negative in 2015-16 as the government share of abandonment costs exceeded tax revenues f

Also in this section
North Sea oil's rock hoppers
19 January 2018
Shell is happy to give the Penguins project a helping hand
Latest licensing rounds
19 January 2018
The industry's most comprehensive list of current and recent rounds for onshore and offshore licenses
Guyana—at the frontier
19 January 2018
ExxonMobil and its partner are racing ahead with their major Liza discovery in Guyana, at Latin America's exploration frontier. Others are struggling to replicate the success