Deepwater Discoveries and Surging Demand to Drive Crude Oil Industry

Monday 14 May 2012,

Maturing conventional oil fields and a surging demand for crude are intensifying exploration efforts in the hope of boosting production.

A new report shows that a substantial increase in investment within the exploration and production (E&P) industry means that global oil discoveries have grown exponentially in number. This is exemplified through the many deepwater discoveries made over the past year, particularly in the South American region.

The E&P industry was devastated by the global economic crisis, and a lack of funds, coupled with low crude oil prices, caused many major projects to be delayed or even cancelled. However, the elevated demand for crude oil and improved prices has encouraged a strong recovery within the industry.

Rapid increases in crude oil prices over the past year have seen $90 per barrel become the norm, thanks toincreased global demand and supply disruptions in the Middle East due to continuing repercussions from the Arab Spring. Sustained high prices and high demand are attracting huge investments from oil giants.

There was a substantial increase in oil discoveries worldwide during 2011, when 183 oil discoveries were announced. Asia-Pacific led with a 29% share, followed by South and Central America with 23%, and Middle East and Africa with 22%. Brazil holds the highest number of discoveries for one country, with most of these finds being made in deepwater areas.

South and Central America will play an increasingly important role in meeting global oil demands, as enormous heavy oil reserves in Venezuela and discoveries in Brazil will help to meet global crude oil needs in future years. Over the past two years, Brazil has discovered the world’s most promising fields since the discoveries made in Kashagan, Kazakhstan, in 2000. South and Central America is therefore anticipated to be one of the most sought-after locations for future E&P investments.

World crude oil reserves increased from 1,268.8 billion barrels in 2000 to 1,620.3 billion barrels in 2011, at an average annual growth rate (AAGR) of 2.5%. Crude oil production globally increased from 24,759.1 million barrels in 2000 to 27,156.6 million barrels in 2011, at an AAGR of 0.9%. The crude oil industry is expected to grow at a steady pace, increasing further to 28,925.4 million barrels in 2016.

The Crude Oil Industry to 2016 - Deepwater Discoveries Worldwide and Rising Industrial Demand in Emerging Economies Driving the Industry Report provides an in-depth analysis of the global crude oil industry across the value chain (upstream, midstream and downstream), and highlights various concerns, key trends and challenges involved in the industry. It provides competitive analysis of major companies across the value chain, comparing the major integrated and independent companies, as well as the major international and national oil companies. The report also gives detailed information on the crude oil demand-supply scenario, with forecasts to 2016, major planned projects across the value chain, future trends and opportunities in the overall crude oil market.

The report is built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis by a team of industry experts.