The global oil and gas industry largely retreated from searching for new resources in frontier areas in recent years amid concerns about long-term oil demand, the surge of production from the U.S. shale industry and highly volatile commodity prices. Yet new resources are likely needed to meet oil demand decades into the future. Is the industry’s appetite for frontier exploration and development returning? Where are the most promising areas and what is needed to unlock those resources? Which companies will play a leading role and how will they finance their operations?
Given the transition away from oil and gas to cleaner fuels, upstream oil and gas players face a conundrum—which assets and what regions should they invest in to stay in business. Long-term investments such as oil and gas require clear market signals, with significant business risks to staying solely in oil and gas. So where are the next “advantaged” basins or regions for oil and gas investment? Where does wildcat exploration make sense, given the typical long-term payback? To what extent can a decarbonized portfolio be achieved by an upstream company?