The Strategist

Rystad: Cost of pre-development of oil and gas fields will grow to $58B

07/11/2023 - 10:11

Oil and gas businesses are searching for more efficient and affordable ways to boost production, according to the Norwegian consulting firm.

Erik Christensen
Erik Christensen
Oil and gas businesses from around the world may have to spend up to $58 billion more in 2023 to continue developing their current reserves, forecasts the Norwegian consulting firm Rystad Energy.

The company's specialists point out that further development of current assets may receive a significant boost  because oil and gas businesses are seeking for more efficient and affordable ways to improve production. According to the forecast, "the cost of additional development, a technique for extracting additional resources from existing wells rather than drilling new ones, could increase by nearly 20% this year to $58 billion."

Companies are likely to continue developing mature areas that have been producing for more than five years and are starting to show signs of production reduction, according to Rystad Energy specialists. The company estimates that these projects might affect 17%, or 260 000 wells, globally.