Exploration 'Back to Black' in 2017: WoodMac

A new study by UK-based consultancy Wood Mackenzie on what to expect from global oil and gas exploration shows that this sector should return to profitability in 2017 after five years of only single-digit returns.

Andrew Latham, vice president of exploration at Wood Mackenzie said that "the industry has a good chance of achieving double digit returns in 2017. Smarter portfolio choices and lower costs are already paying off," the consultancy said.

Ocean rig Athena drilled six successful oil and gas exploration wells in a row for Cairn offshore Senegal in 2015/16 (Photo credit: Cairn Energy)

According to its analysis of the 2017 global exploration outlook, exploration in 2017 will continue its transformation to a smaller, more efficient industry.

“Overall investment will at best match 2016 year’s spend of around $40bn and may yet fall further. On the bright side, lower costs mean well counts may hold up close to 2016 numbers," the report said.

Azerbaijan Desk