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Oil discoveries at 70-year low signal a supply shortfall ahead

Drillers have slashed their exploration budgets after prices tumbled by more than half two years ago

Published Tue, Aug 30, 2016 · 09:50 PM
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EXPLORERS in 2015 discovered only about a tenth as much oil as they have annually on average since 1960. This year, they'll probably find even less, spurring new fears about their ability to meet future demand.

With oil prices down by more than half since the price collapse two years ago, drillers have cut their exploration budgets to the bone. The result: just 2.7 billion barrels of new supply was discovered in 2015, the smallest amount since 1947, according to figures from Edinburgh-based consulting firm Wood Mackenzie Ltd. This year, drillers found just 736 million barrels of conventional crude as at the end of July.

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