Discoveries continue to be made, but the industry’s track record is showing signs of weakness.
Three of five Gulf of Mexico blocks offered were awarded during the second phase of Mexico’s Round One.
The supply-demand imbalance continues to add to commodity price instability, forcing companies to find more ways to maintain or grow production at a lower cost.
Shell has spent about $7 billion on exploration in the waters off Alaska so far and said it could take a hit of up to $4.1 billion for pulling out of the Chukchi Sea for the "foreseeable future".
E&Ps in the Bakken, Eagle Ford and Permian have made strides in well completion efficiencies and costs. Though, even with increased recoveries, opening up production at low prices sits poorly with the industry.