Exploration and development expenditures likely to drop from 2019’s four-year high (5/28/2020)

Global expenditures related to oil and gas exploration and development (E and D) increased $42 billion (13%) in 2019, totaling $361 billion, according to the aggregate financial reports for 102 oil companies. Additions to these companies’ collective proved reserves totaled 18 billion barrels of oil equivalent (BOE), consistent with the 2010–18 annual average additions. As a result of the significant price declines since the beginning of 2020, however, global proved reserves will likely be revised significantly downward this year. E and D expenditures will also likely decline significantly, with several companies already announcing large budget reductions. ... More »