Following a 64% plunge in drilling spend with less than two dozen wells drilled in 2020, analysts expect operators to ramp up high-impact appraisal activity this year with a continued focus on oil.

The outlook—centered on resources of at least 100 million barrels of oil, 1 Tcf of natural gas and play-opening frontier discoveries—was delivered as the oil and gas industry continued to claw its way from the pandemic-driven drop in oil demand that slowed exploration and appraisal activity and further squeezed spending.

“We expect there to be an increase in activity to 32 wells with 26 of these clusters firm and a further six is probable,” Joe Killen, an exploration and appraisal analyst for Westwood Global Energy Group, said on a recent webinar. “We see a continuation of trends that we saw with appraisal of oil over gas, with a focus on producing basins.”

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access