Industrial research and consultancy firm, Wood Mackenzie (WoodMac), has recently released the findings of a survey entitled The Future of Exploration, in which it reached out to around 200 industry leaders associated with major exploration and production (E&P) companies.
The survey was conducted with the aim of understanding the current state of the global E&P segment, and gauging how the sector is bracing for future developments. Three focal points formed the backbone of the study: the role of exploration versus other growth options; the approaches companies are taking; and the challenges that need to be overcome. The WoodMac survey’s results have emerged along expected lines. The consultancy said that “it comes as no surprise to hear that companies will continue to explore low-cost opportunities in 2017”.
“NOCs will put more emphasis on growth and higher exploration impact, while value creation, capital efficiency and returns on investment are all high on the priority list,” it added, stating that the study’s observations reflect the mood of the industry with regards to E&P. The researcher concluded that:
- Conventional exploration and increased recovery from existing assets are the top resource-capture options;
- Value creation remains the most important metric to demonstrate performance, followed by capital efficiency and returns on investment;
- ENI is the most-admired explorer, with Anadarko also highly-rated. The industry increasingly sees the majors as important explorers;
- The NOCs put more emphasis on growth and higher exploration impact; and
- Short-term focus remains in mature basins for high-margin, low-cost, and near-field prospects away from deepwater and frontier basins.
