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BUSINESS OUTLOOK
2017
Figure 15: Exploration Drilling
0
100
200
300
400
500
600
0
5
10
15
20
25
30
35
40
45
50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Volumes Discovered (Million boe)
Exploration Wells
Potential Upside on Forecast
Volumes Discovered
Source: Oil & Gas UK, OGA, Wood Mackenzie
Number of Exploration Wells
(including geological sidetracks)
Appraisal activity also remained at a record low with only eight wells drilled in 2016. The outlook over the near
term is not expected to improve with between five and eight wells expected in 2017. This is, in part, because
pre-development costs for smaller prospects are being reduced by limiting the number of appraisal wells drilled
and companies are also less likely to risk appraising marginal discoveries unless well costs come down or until the
commerciality of the discovery is improved. Furthermore, the lack of exploration activity over recent years has
meant that there have simply been fewer new opportunities to appraise.
Figure 16: Appraisal Drilling
0
10
20
30
40
50
60
70
80
90
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Appraisal Wells
Potential Upside on Forecast
Source: Oil & Gas UK, OGA
Number of Appraisal Wells
(including geological sidetracks)