Petroconsultants: exploration poor in 1995

Last year was a relatively poor year for worldwide exploration.

So concludes Petroconsultants SA, Geneva, in a new study.

Petroconsultants estimated new field wildcat wells drilled worldwide in 1995 led to discovery of 5.7 billion bbl of oil and condensate and more than 50 tcf of gas.

While the new gas reserves figure is an improvement from total gas found in 1993 and 1994, total liquids found fell to less than 10 billion bbl for the first time in more than 10 years, down 45% from 1994 results.

"Countries that did add significantly to liquids reserves included Colombia and Algeria," said Petroconsultants, "although the latter could not match its spectacular successes of 1994.

"The potential reserves in the Bayu/Undan discovery in the Australia-Indonesia Zone of Cooperation (ZOC) are estimated as significant enough to place that area in the top five for both liquids and gas reserves added in 1995" (Table 1 [56505 bytes]).

Petroconsultants said significant gas discoveries throughout the Far East meant that the region contributed 26.6 tcf, or more than half of worldwide gas reserves added in 1995.

Exploration comparisons

The U.S. added significantly to liquids reserves, said the analyst, coming second only to Colombia in total discoveries. However, the U.S. success came as a result of intense wildcatting activity (Table 2 [44904 bytes]).

The U.S. accounted for more than 56% of all wildcats drilled in the world excluding the former Soviet Union (FSU).

"Consequently the U.S. average reserves discovered per wildcat was only 400,000 bbl of oil equivalent, compared with a world average of 5.2 million bbl."

Petroconsultants said 13 countries found an average of more than 50 million bbl of oil equivalent per wildcat drilled, notably the major producers in the Middle East.

The decline in wildcat drilling since 1986 was said to have continued last year, with only 2,730 such wells drilled worldwide outside the C.I.S., compared with 6,300 in 1986 and 4,200 in 1991.

Figures for total 2D seismic data acquired outside North America and the FSU also showed a decline, although 3D seismic activity increased in those regions.

These data strongly confirm the trend by industry towards more detailed predrilling exploratory work and significant reductions in higher-cost drilling efforts, said Petroconsultants.

Discoveries lag production

Failure of exploration programs to replace production in 1995 was a common phenomenon worldwide.

Last year saw the tenth consecutive decline in remaining worldwide reserves and the fourth consecutive decline in worldwide gas reserves (Table 3 [50949 bytes]).

"Of nations with oil production in excess of 50,000 b/d," said Petroconsultants, "only Algeria, Colombia, Congo, Pakistan, and Viet Nam added more liquids reserves than they produced.

"Similarly, of nations producing more than 200 MMcfd of gas, only Colombia, Egypt, Indonesia, Iran, Norway, Oman, and Trinidad and Tobago added more gas reserves than they produced."