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Sun Jan 24, 2021, 08:58 PM

Big Oil hits brakes on search for new fossil fuels

LONDON (Reuters) - Top oil and gas companies sharply slowed their search for new fossil fuel resources last year, data shows, as lower energy prices due to the coronavirus crisis triggered spending cuts.

Acquisitions of new onshore and offshore exploration licences for the top five Western energy giants dropped to the lowest in at least five years, data from Oslo-based consultancy Rystad Energy showed.

The number of exploration licensing rounds dropped last year due to the epidemic while companies including Exxon Mobil, Royal Dutch Shell and France’s Total also reduced spending, Rystad Energy analyst Palzor Shenga said.

“Acquiring additional leases comes with a cost and it demands some work commitments to be fulfilled. Hence, companies would not want to pile up on additional acreages in their non-core areas of operations,” Shenga said.

https://www.reuters.com/article/us-oil-exploration-cuts/big-oil-hits-brakes-on-search-for-new-fossil-fuels-idUSKBN29U00V

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Reply Big Oil hits brakes on search for new fossil fuels (Original post)
Klaralven Jan 24 OP
Thekaspervote Jan 24 #1
Klaralven Jan 25 #2

Response to Klaralven (Original post)

Sun Jan 24, 2021, 10:34 PM

1. In laymen's terms...there's a huge oil glut...no money in exploration for low profit oil

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Response to Thekaspervote (Reply #1)

Mon Jan 25, 2021, 07:01 AM

2. Currently, but it depends on whether economies and business like travel come back.

As a result, the drop in exploration activity could lead to a supply gap in the second half of the decade, analysts said.

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