Exploration success on decline globally while Guyana continues to add billions of barrels - Panorama Insurance Brokers

Exploration success on decline globally while Guyana continues to add billions of barrels

The success rate of global conventional oil and gas exploration has declined in recent years, but the most painful blow has been to onshore wildcat wells, a Rystad Energy analysis reveals. In 2020, the success rate of these drilled wildcats plummeted to an all-time-low of 10.6%, marking an annual decline for a fourth year in a row. Meanwhile, the exploration success rate offshore Guyana at the prolific Stabroek block remains the highest in the world at around 80%, with multi-billion-barrel discovery potential remaining.

According to Rystad Energy, during the first half of the last decade, the operators enjoyed high success rates in their wildcat drilling campaigns, of between 40-60% for onshore and 30-40% for offshore. Both onshore and offshore wells have seen a decline in success rates in recent years but for onshore the drop since 2016 – when explorers recorded nearly 60% success with their wildcats – has been particularly alarming.

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