The consulting firm said in a new report on Wednesday that the need for exploration in the ongoing energy transition is diminishing. While exploration is now often seen as discretionary or even unwarranted, lack of it could lead to a huge supply gap, Kallanish Energy reports.
“Cumulative global demand for oil and gas over the next two decades will be at least 1,100 billion barrels of oil equivalent (Bboe) even in a 2°C scenario. It could be as much as 1,400 Bboe on our base case forecasts. Around 640 Bboe can be met by proven developed supply from onstream fields. This leaves a supply gap of between 460 billion to 760 Bboe,” the report said.
Existing discoveries could meet this entire supply gap, and even more, the analysis suggested. However, investment is needed and only resources with the lowest cost and best economics will attract capital.
To ensure there will be enough oil and gas available in the future, whatever the pace of the energy transition, the hydrocarbon industry “needs to maintain its success rate of the past five years until at least 2030,” WoodMac predicted.
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