OIL, GAS EXPLORATION COSTS SET TO FALL 33%, SAYS WOOD MACKENZIE

As oil and gas industry operators adjust to the low oil price environment with exploration budget cuts in 2015 expected to average 30 per cent, a new report by Wood Mackenzie suggests that the cost of exploration in the sector will slump by 33 per cent by 2016.

In its report “Upstream cost deflation: how much could costs of exploration fall?”, Wood Mackenzie stated that exploration deflation will average 33 per cent by 2016, comprising three global elements that are locally compounded by favourable exchange rate moves.

 

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