{"id":48797,"date":"2019-10-03T11:19:51","date_gmt":"2019-10-03T16:19:51","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48797"},"modified":"2019-10-03T11:19:55","modified_gmt":"2019-10-03T16:19:55","slug":"oil-discoveries-hit-70-year-low","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48797","title":{"rendered":"Oil Discoveries Hit 70-Year Low"},"content":{"rendered":"\n

Oil Discoveries Hit 70-Year Low<\/a><\/h3>\n\n\n\n
\"Offshore\"\/<\/figure>\n\n\n\n

The last three years has been the worst stretch of time in seventy years for new conventional oil discoveries.<\/p>\n\n\n\n

A new report from IHS Markit finds<\/a> that conventional oil discoveries plunged to a seven-decade low and \u201ca significant rebound is not expected.\u201d Conventional exploration \u2013 as opposed to unconventional development, including shale \u2013 had already been trending down following the 2008 global financial crisis and its aftermath, which overlapped with the rise of horizontal drilling and hydraulic fracturing in several U.S. shale basins.<\/p>\n\n\n\n

But the collapse of oil prices in 2014 really knocked conventional exploration \u2013 and thus, discoveries \u2013 on its back.<\/p>\n\n\n\n

After OPEC refrained from cutting production in the face of a swelling supply surplus in late 2014, prices fell sharply\u2026and continued to fall for much of the next year and a half. WTI bottomed out in early 2016 below $30 per barrel, before a pullback in drilling and production cuts by OPEC+ led to a more durable price rebound beginning in 2017.<\/p>\n\n\n\n

But the multi-year downturn hit conventional exploration in multiple ways. Not only were companies slashing spending and cancelling riskier ventures, but the oil majors and investors began to view short-cycle shale drilling as inherently less risky. That was because drilling was quick \u2013 companies were able to turn projects around in a matter of weeks or months, not the years that large-scale conventional projects took, particularly those offshore in deepwater. Capital flowed en masse from conventional to unconventional development.<\/p>\n\n\n\n

Predictably, that led to a steep rise in U.S. shale output, while simultaneously leading to a sharp contraction in conventional discoveries. \u201cOne of the main drivers here is the shift of investment by US independents from international exploration to shale opportunities in the United States\u2014shorter cycle-time projects\u2014with greater flexibility to respond to changing market conditions,\u201d Keith King, senior advisor at IHS Markit and author of the report, said in a statement. <\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Oil Discoveries Hit 70-Year Low The last three years has been the worst stretch of time in seventy years for new conventional oil discoveries. A new report from IHS Markit finds that conventional oil discoveries plunged to a seven-decade low and \u201ca significant rebound is not expected.\u201d Conventional exploration \u2013 as opposed to unconventional development, including shale […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[27292,6010,596,600],"class_list":["post-48797","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-conventional-oil-discoveries","tag-nick-cunningham","tag-oil-supply","tag-opec"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48797"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48797\/revisions"}],"predecessor-version":[{"id":48798,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48797\/revisions\/48798"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}