Oil and gas discoveries hit lowest total in 60 years

Oil and gas discoveries hit lowest total in 60 years

Total oil and gas discoveries have reached their lowest total in 60 years, according to research by IHS Markit.

New discovery figures have continued to decline since dropping of a cliff in 2015, when discoveries also hit a six-decade low.

Prior to 2013, the average number of discoveries laid between 400 and 500 per year, but in 2016 there were only 174 oil and gas finds according to the research group.

These findings suggest that global commodity supplies will be significantly lighter over the next decade, as the average time from discovery to production is usually five to seven years.

The slowdown in discovery figures over the last three years reflects the streamlining approach followed by many oil and gas companies in response to the global commodity price plummet of 2014.

A turn towards North American onshore shale oil may also be responsible for the low discovery figures of recent years.

@RGNonline