Conventional action slows as Wall Street favors lower risk

摘要

Operators are backing away from conventional drilling with conventional discoveries sinking during the past three years to the lowest level in seven decades.This is according to a recent report from IHS Markit.U.S.E&Ps that once ventured abroad to drill for company-maker fields have retreated to the shale plays of the U.S.where the risk is less.The shales offer shorter cycle times and more flexibility in today’s climate of uncertain demand and lower commodity prices.The runaway success of unconventional drilling led producers to turn away from conventional drilling,”most drastically after oil prices collapsed in 2014,”according to the study.The result could be significant reductions in future conventional reserve additions to global supply.