Oil and natural gas discoveries in global markets fell to a record low in 2023, while exploration costs doubled. This plays an important role in driving up energy prices and creating tensions in supply chains.
According to the Gas Exporting Countries Forum’s (GECF) annual natural gas report for 2024, a total of 5 billion barrels of oil and gas equivalent was discovered in 2023. This figure represents a 52.3 percent decrease compared to 2022. Natural gas accounts for 40 percent of the gas and 60 percent of the oil discovered. Lower discovery volumes have led to a significant increase in the cost of gas and oil exploration.
The cost of exploration for natural gas rose from $2.6 per barrel of oil equivalent in 2022 to $5.3 in 2023. In oil, the cost of exploration increased from $3.5 in 2022 to $8.8 in 2023.
A major reason for the low discoveries is cited as disappointing results from some key offshore exploration wells in 2023
By country, the most important discoveries were made in Indonesia, Malaysia and Guyana.
This has brought risks for global energy markets. These include rising energy prices, strained supply chains and jeopardized energy security.
Experts say rising energy prices and tensions in supply chains could lead to a slowdown in inflation and economic growth around the world.
