Global discoveries of new conventional oil and natural gas in 2017 totaled only 7 billion barrels of oil equivalence—a level last seen in the 1940s. (See chart below.) According to Rystad Energy, not only did the 2017 total volume of discovered resources decrease, but the resources per field also declined. In 2017, average offshore discoveries held 100 million barrels—down from 150 million barrels in 2012. The reserves replacement ratio reached just 11 percent for oil and natural gas in 2017—the eleventh straight year it was below 100 percent. The last time the reserve replacement ratio reached 100 percent was in 2006. Since 2014, exploration expenditures fell over 60 percent most likely due to low oil prices. Further, the world consumes 79 percent more hydrocarbons than it discovers. The Trump administration’s plan to open up most U.S. offshore areas to oil and gas drilling, however, could help boost investment in the sector by billions of dollars and open up access to billions of barrels of oil. Source: Rystad Energy

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