Global exploration spending for natural gas and oil prospects, minus the appraisal costs, is set to recover from historic lows as operators “become bolder in the coming years,” according to Wood Mackenzie.

E&P spending

Spending by the exploration and production (E&P) sector, minus the appraisal costs, is set to average about $22 billion over the next five years in real terms, the consultancy’s research team said. The increased capital has resulted from “attractive exploration economics, the need for energy security and the emergence of new frontiers.” 

Leading the charge in E&P spending through 2027 will be the national oil companies (NOC) and integrated majors.

“Explorers will become bolder in the coming years,” said Wood Mackenzie’s Julie Wilson, who directs Global...