Posted on 10/14/2015 12:00:46 PM PDT by bananaman22
A new report finds that the largest oil companies are set to cut spending on exploration by at least half, potentially leading to very few new oil discoveries in the years ahead.
The report from investment bank Tudor, Pickering, Hold & Co., and reported by Fuel Fix, estimates that exploration budgets among the oil majors will drop to $25 billion in 2016, down from $50 billion from just a few years ago. Obviously, low oil prices are taking their toll, forcing deep spending cuts in a desperate attempt to shore up profitability. But the cuts have large implications for the energy sector, increasing the chances that some large oil fields remain undeveloped for years.
“Many (exploration and production) companies are virtually abandoning exploration altogether, especially in the U.S.,” the report concluded.
(Excerpt) Read more at oilprice.com ...
Not buying it.
Petro Ping.
Yeah, that’s the end, until the price goes up again.
Not much exploration in USA save DW for many years by majors.
Look to second tier companies like EOG which ‘find’oil via new technology deployment.
That is the new growth avenue.
Time for Oil Minor in Sea.
“oil companies are set to cut spending on exploration”
It’s OPEC and the Saudis cutting prices. They do it all the
time. Every time the US gets close to production that may
compete with them they dump oil. Nothing new. I’ve seen this
happen before.
Gadzooks! Øbama's strategy must be at the behest of Big Oil!!! I knew it! No Iran Deal for Oil.
EOG just laid off most of their exploration engineers about 4 months ago.
No surprise, but they will be back with a vengeance at the right time.
BTW, what is an ‘Exploration Engineer’ anyway?
Another hyperbole article from oilprice.com
I quit posting articles from them, just too much nonsense and hype.
I’ve gotten to the point when they show up in my other sources, I don’t even bother to click the link to read their articles.
And they don’t have a plan for how we will heat our homes and power our cars.
And no, wind and solar will not cut it.
Guys that map the fields and where to drill.
Ok.
Those are actually geologists, not engineers like me
And we were already in a coal minor. /rimshot
-— Not buying it. -—
What aren’t you buying? I work for a company that provides services to the oil and gas industry, and training of industry workers is way off. Shell just gave up on a lease in Alaska.
Oil prices have always been volatile. There have always been prices spikes and collapses. But if you look over the last 14 years, the prices have stayed at a higher level compared to historical trends. Sure, there are going to be peaks and valleys in exploration and research. But to complain of doom & gloom and make imp;licit threats because prices aren’t always what they want is ridiculous. Even the Saudis realized that it was an untenable position to always try to prop up prices. If U.S. oil producers want to throttle oil supply all the time, they will push more people to adopt other energy sources as much as they can.
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