Norwegian energy research firm Rystad said the amount of crude oil and natural gas discovered globally last year fell to the lowest level in 75 years. Operators discovered 4.9 billion barrels of oil and natural gas in 2021, the lowest level since 1946 and down from 12.5 billion in 2020 and 15.8 billion in 2019. Rystad said, “A reduction in cumulative volume highlights the absence of large individual finds.”
Houston Chronicle said oil companies are making smaller discoveries “not necessarily because the world is running out of fossil fuels. Rather, companies are underinvesting in exploratory drilling and new projects after recent oil busts… Oil companies slashed spending on new projects by more than 27 percent to $334.7 billion in 2020 – down from $461.7 billion in 2019.” Capital spending rose slightly in 2021, Canadian bank RBC Capital Markets said. And Austin-based Enverus said drillers are expected to raise capital spending by about 20 percent in 2022.
Houston Chronicle added, “The lack of new oil discoveries is a concern for the oil industry, which must constantly replace depleting oil and gas reserves to maintain production levels and revenues.”