Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

Poor oil discovery rates indicate future shortfall

31/08/2016 by Usha Tyagi

W1siziisijiwmtyvmdgvmzevmdkvndavmtkvnzi1l09pbcbsawcuanbnil0swyjwiiwidgh1bwiilci2mdb4ndawxhuwmdnlil1d

The latest findings from the oil and gas industry show that thanks to exploration budget cuts, oil discoveries have dropped to a 70-year low. This not only signals that there is likely to be a future shortfall, but also that prices could rise as a result.

In the newest figures, it was shown that only a tenth as much oil has been discovered in 2015 as compared to the average annual amounts dating back to the 1960s. After the price collapse in 2014, oil prices remain discounted by more than half. As a result, exploration budgets have been slashed, and that means that just 2.7 billion new barrels were discovered in 2015. This is the least amount since 1947, consultants Wood Mackenzie Ltd said.

The shortfall comes during a period of increasing oil demand. In fact, the US Energy Information Administration suggests that 105.3 million barrels will be required by 2026 – significantly up from today’s 94.8 million barrels. Unfortunately, though US shale efforts could help to alleviate some of the pressure, with the price of a barrel still below $50, substantial growth in that market has been stymied.

Oil prices can be expected to rise, however, thanks to the future shortage. In fact, in decades to come, when the low current exploration rates begin to cause problems for productivity, there is significant potential for prices to soar. Statoil ASA Chief Executive Officer Eldar Saetre said: “Exploration activity is among the easiest things to regulate, to take up and down. It’s not necessarily the right way to think. We need to keep a long-term perspective and maintain exploration activity through downturns as well, and Statoil has.”

Prices for oil remain extremely low, with the price advancing by 0.6 per cent on Tuesday 30th August to reach $49.57 per barrel. However, this is unlikely to continue in the long term, with Petroleo Brasileiro SA Chief Executive Officer Pedro Parente saying: “Considering the reduction in the prices, you have to be looking to every dollar you are spending. It can’t continue forever, because then what we’ll see is a spike in prices in the future.”

Certainly, for now, it seems as if prices will remain low and, as a result, exploratory operations will remain subdued. However, if future demand is to be met without causing significant shortfalls that perpetuate a sudden spike in prices, it is essential for the oil and gas industry to continue looking for further reserves. 

 

About Us

Montash is a multi-award winning global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:

ERP Recruitment, BI & Data Recruitment, Information Security Recruitment, Enterprise Architecture & Strategy Recruitment , Energy Technology Recruitment, Demand IT and Business Engagement Recruitment, Digital and E-commerce Recruitment, Leadership Talent, Infrastructure and Service Delivery Recruitment, Project and Programme Delivery Recruitment.

Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmduvmdqvmtyvndavmzkvotg5l3nodxr0zxjzdg9ja181ndm0mduxmtuuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

7 Things About Your CV You Need To Fix Right ...

2017-05-04 18:00:00 +0100

As a global technology recruitment agency, we are in touch with candidates day in and day out. We've seen all kinds of CVs in our time and know a good one when we see it. As our recruitment team look to find the ideal candidate, they are looking for CVs that show how candidates can impact their clients in a positive way, not just look flashy on paper. You only have a small amount of space on your CV to show off your skills, so make every word count. Cut...

W1siziisijiwmtcvmdqvmjqvmtqvmzqvmzuvnjg3l3nodxr0zxjzdg9ja182mdq2otc5nziuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

What Does A Snap Election Mean For Recruitment?

2017-04-25 08:00:00 +0100

On Tuesday 18th April, Prime Minister Theresa May called a snap general election for 8th June, taking the nation by surprise. Rather than waiting until 2020, voters will now be casting their ballots in a matter of weeks. The hope for the government is that a Tory victory give the prime minister a strong mandate in parliament as Brexit negotiations begin. This sudden decision has been embraced by many in the recruitment industry due to the anticipated st...