Hydrocarbon Discoveries For 2021 to Reach Record Lows: Rystad

BUSINESS TURKMENISTAN
Hydrocarbon Discoveries For 2021 to Reach Record Lows: Rystad
Total volume of discovered oil and gas in January-November period this year was calculated at 4.7 billion barrels of oil equivalent. (Photo: TotalEnergies)

Oil and gas discoveries are on track this year to reach their lowest in 75 years, according to data compiled by energy analysis company Rystad Energy, the MarketWatch financial and business news website reported on Monday.

Total volume of discovered oil and gas in January-November period this year was calculated at 4.7 billion barrels of oil equivalent (boe) and, with no major finds announced so far in December, the industry is on course for its worst discoveries toll since 1946, according to Rystad Energy.

In 2020, the figure for oil and gas discoveries was 12.5 billion boe.

“Although some of the highly ranked prospects are scheduled to be drilled before the end of the year, even a substantial discovery may not be able to contribute towards 2021 discovered volumes as these wells may not be completed in this calendar year,” Palzor Shenga, Vice President at Rystad Energy said.

In November, major U.S. banks and market players raised their forecasts for oil prices in 2022. Bank of America analysts expect the price of Brent crude to rise to $120 by the end of June 2022. JPMorgan Bank predicts that the average price of Brent crude will be $88 per barrel in 2022.

Russell Hardy, the head of one of the world's largest oil trader Vitol Group, expects oil prices to rise to $100 per barrel due to a lack of supply and a recovery in fuel demand.