Oil & Gas UK Activity Survey 2016

ACTIVITY SURVEY 2016

5.2 Drilling Activity Exploration

Despite efforts to stimulate exploration through the initiatives of the Exploration Task Force, activity continued to decline in 2015 with only 13 exploration wells drilled.

Exploration budgets are particularly impaired by global capital constraints. The outlook is expected to worsen this year with only seven to ten wells anticipated. With economic conditions making investment in exploration drilling tougher than ever, there is much need for urgent government stimulus if anywhere close to the estimated 2-6 billion boe of yet-to-find potential is to be recovered.

Figure 18: Exploration Well Count and Forecast

50

45

Exploration Sidetracks Exploration Wells

40

35

30

25

20

15

7 - 10 Wells

10

5

Number of Wells Drilled including Sidetracks

0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Oil & Gas UK, OGA

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