Global Top 10 Emerging Oil and Gas Exploration and Production (E&P) Markets - Market Analysis, Investment Scenario and Production Forecasts to 2020
"Global Top 10 Emerging Oil and Gas Exploration and Production (E&P) Markets - Market Analysis, Investment Scenario and Production Forecasts to 2020" is the latest report from GlobalData, the industry analysis specialist, which analyzes the global oil and gas industry. The report provides an overview of the top 10 emerging oil and gas E&P markets in the world. It also gives an analysis of major drivers and challenges affecting the global top 10 emerging E&P markets, major exploration blocks and sedimentary basins, historic and projected crude oil and natural gas production, financial deals activity, and competitive landscape where possible.
The report is compiled using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis by GlobalData's team of industry experts.
The report analyzes the major emerging regions in the global upstream sector. The scope of the report includes -
The report provides an overview of the upstream sector of the top 10 emerging E&P markets.
The report discusses the major drivers and challenges of the emerging markets.
It also discusses the competitive landscape in each region where possible.
The report provides historic crude oil and natural gas production where possible.
It provides production forecasts until 2020 where possible.
The report discusses financial deals activity of the markets where possible.
Reasons to buy
This report will enhance your decision-making capabilities. It will allow you to -
Develop business strategies with the help of specific insights about the major emerging E&P markets globally.
Identify opportunities and challenges in the top 10 emerging E&P markets worldwide.
Design your expansion and new entry strategies based on the competitive structure of the markets.
Identify the most promising E&P markets over the next decade.
Identify opportunities to partner with companies operating in these prolific markets.
Develop custom strategies for different geographies based on production growth, both historic and forecast, investment trends and the potential of each market.
Table of Contents
1 Table of Contents
1 Table of Contents 5
1.1 List of Tables 9
1.2 List of Figures 10
2 Introduction 12
2.1 Overview 12
2.2 GlobalData Report Guidance 13
3 Deepwater Gulf of Mexico 14
3.1 Comeback of Deepwater Drilling in the Gulf of Mexico to Reinforce the Potential of the Region 14
3.1.1 Deepwater Drilling in the Gulf of Mexico Expected to Return to Pre-Blowout Levels Soon 14
3.2 The Success of the 216/222 Lease Sale in the Central Gulf of Mexico Indicates Strong Interest of Oil and Gas Companies in the Region 17
3.3 Several Oil and Gas Discoveries Made in Deepwater Gulf of Mexico over past Two Years 18
3.3.1 Potential of the Gulf of Mexico Re-established by Deepwater and Ultra-Deepwater Discoveries 18
3.4 Crude Oil Production in the Deepwater Gulf of Mexico Increased at an Average Annual Growth Rate of 1.8% Between 2001 and 2011 20
3.4.1 Natural Gas Production in the Deepwater Gulf of Mexico Decreased at an Average Annual Growth Rate of -2.9% Between 2001 and 2011 21
3.4.2 Thunder Horse, Shenzi and Ursa/Princess are Key Crude Oil Production Fields in the Deepwater Gulf of Mexico 22
3.5 Deepwater Production in the Gulf of Mexico is Expected to Increase at an Average Annual Growth Rate of 2.2% Between 2011 and 2020 23
3.6 Gulf of Mexico Witnessed 18 Financial Deals in 2012 (Until September) 24
3.7 BP Plc Participated in the Largest Number of Deepwater Exploration Blocks in the Gulf of Mexico as of 2011 25
3.8 Shell was the Highest Producer of Gross Crude Oil and Natural Gas in the Deepwater Gulf of Mexico in 2011 26
4 Oil Shales in the US 27
4.1 The Bakken Shale's Crude Oil Deposits are One of the Largest in the US 29
4.1.1 Bakken Shale Play, Historical and Production Forecast, 2004-2020 29
4.1.2 Bakken Shale, Major Companies by Acreage, 2012 30
4.1.3 North Dakota Bakken Shale, Major Companies by Production, 2011 31
4.2 Eagle Ford Shale Emerged as Crude Oil Production Hub in the US 32
4.2.1 Eagle Ford Shale, Historic and Forecast Production 2004-2020 32
4.3 Granite Wash Stretches across Northeastern Texas and Southern Oklahoma into the Anadarko Basin, US 34
4.3.1 Granite Wash Play, Historic and Forecast Production, 2004-2020 34
4.3.2 Granite Wash, Major Companies by Acreage 35
4.3.3 Granite Wash, Major Companies by Production 36
4.4 Niobrara Shale Formation Spans across Northeast Colorado, Northwest Kansas, and Parts of Nebraska and Wyoming 37
4.4.1 Niobrara Shale, Major Companies by Acreage, 2012 38
4.4.2 Niobrara Shale, Major Companies by Production, 2011 39
4.5 Emerging Oil Shale Plays in North America 40
4.5.1 Barnett Combo Play 40
4.5.2 Cana Woodford Shale 40
4.5.3 Tuscaloosa Marine Shale 40
4.5.4 The Green River Basin Oil Shale Field 41
4.5.5 Wolfcamp Shale Formation 41
5 Oil Sands in Canada 42
5.1 Canada Possesses Third Largest Proved Oil Reserves in the World 42
5.2 Oil Sands in Canada - Drivers and Challenges 44
5.2.1 The Oil Sands Industry Continues to Attract Foreign Investment due to the Existence of a Favorable Business Climate in Canada 44
5.2.2 High Crude Oil Prices Support Development of Oil Sands Industry in Canada 44
5.2.3 Technological Developments Aid Increased Oil Recovery and Reduce Environmental Impact of Oil Sands Development 44
5.2.4 Oil Sands Industry Continues to Attract Criticism due to High Water Use and Greenhouse Gas Emissions 45
5.3 Oil Sands in Canada - Historic Production and Major Oil Sands Projects 46
5.3.1 Oil Sands Industry in Canada Produced 581.9mmbbl of Bitumen and Synthetic Crude in 2011 46
5.3.2 Athabasca Region Recorded the Largest Bitumen Production from Oil Sands in Canada, 2011 47
5.3.3 Mining Method Accounts for 52.1% of Bitumen and Synthetic Crude Production from Canada's Oil Sands, 2011 48
5.3.4 Heavy Oil Upgraders in the Canadian Oil Sands Industry Recorded 453.1mmbbl of Capacity in 2011 49
5.3.5 Syncrude is the Largest Heavy Oil Upgrader Project in Canada, 2011 50
5.4 Oil Sands in Canada - Production Forecasts 51
5.4.1 Oil Sands Industry in Canada is expected to Produce 3.2mmbblbd of Bitumen and Synthetic Crude by 2020 51
5.4.2 Heavy Oil Upgraders Capacity in the Canadian Oil Sands Industry Expected to Reach 542.5mmbbl by 2020 52
5.5 The Oil Sands Industry in Canada Witnessed 16 Financial Deals Between January to August 2012 53
5.6 Oil Sands in Canada - Competitive Landscape 54
5.6.1 Suncor Energy Incorporated had Net Proved and Probable (2P) Bitumen Reserves of 1,164mmbbls at the End of 2011 54
5.6.2 Imperial Oil Limited Reported Net Proved Bitumen Reserves of 2,413mmbbl by the End of 2011 54
5.6.3 Shell Produced 45mmbbl of Synthetic Crude Oil in 2011 55
6 Offshore Subsalt Basins in Brazil 56
6.1 Brazil's Offshore Subsalt Plays could Contain 50-300 Billion Barrels of Recoverable Oil Reserves 56
6.2 Santos Basin is one of the Most Prominent Basins for Subsalt Exploration and Production in Brazil's Offshore Region 57
6.2.1 33 Active New Exploration and Extension Subsalt Blocks in the Campos Basin 59
6.2.2 Espirito Santo is the Third Most Prominent Offshore Subsalt Basin in Brazil after the Santos and Campos Basins 60
6.3 Substantial Oil and Gas Resources are Driving Subsalt Developments in Brazil 61
6.3.1 Highest Number of Oil and Gas Discoveries in the World Made in Brazil in 2012 (Until October) 62
6.4 Roncador was the Largest Subsalt Offshore Oil and Gas Production Field in Brazil, 2011 64
6.5 Offshore Subsalt Basins in Brazil - Drivers and Challenges 65
6.5.1 Floating Production Storage and Offloading Units to Play a Pivotal Role in Subsalt Development in Brazil 65
6.5.2 Technical and Regulatory Challenges Faced by Oil and Gas Operations in Subsalt Basins 65
6.6 Petrobras Leads Oil and Gas Exploration, Production and Discoveries in the Brazilian Offshore and Subsalt Region 66
7 Extra-heavy Oil Belt in Venezuela 68
7.1 Venezuela is the Second Largest Developer of Extra-heavy Oil Reserves in the World after Canada 68
7.2 Orinoco Extra-heavy Oil Belt Constitutes about 75% of Venezuela's Total Proved Oil Reserves 70
7.2.1 Exploration at the Orinoco Oil Belt, Commenced in 1920 70
7.3 Orinoco Extra-heavy and Heavy Oil Belt Blocks 71
7.3.1 Boyaca Block 71
7.3.2 Junin Block 72
7.3.3 Ayacucho Block 73
7.3.4 Carabobo Block 73
7.4 Orinoco Oil Belt Contributes 20% of Venezuela's Total Oil Production 75
7.4.1 Major Extra-heavy Oil Producing Fields in the Orinoco Oil Belt 76
7.5 Heavy Oil Upgraders in Venezuela 77
8 Upstream Sector in Colombia 78
8.1 Colombia is an Emerging Oil Producer from South and Central America 78
8.1.1 Colombia Recorded Two Billion Barrels of Proved Oil Reserves by the End of 2011 78
8.2 Key Drivers for the Growth of Colombia's Oil and Gas Market 79
8.2.1 The Colombian Petroleum Sector has Attracted Substantial Foreign Direct Investment in Recent Years 79
8.2.2 Increasing Exploration Activities for Oil and Gas in Colombia 80
8.3 Colombia Emerges as Active Destination for Mergers and Acquisitions in Oil and Gas Exploration and Production 81
8.4 Llanos Basin is the Epicenter for Exploration and Production Activities in Colombia 82
8.5 Third Largest Number of Oil and Gas Discoveries in the World Made in Colombia Since 2007 83
8.6 Oil and Gas Production in Colombia has Increased at an Average Annual Growth of 12.8% Since 2007 84
8.7 Oil and Gas Production in Colombia Expected to Grow at an Average Annual Growth Rate of 4.8% Between 2012 and 2020 85
8.8 Ecopetrol Participates in the Largest Number of Exploration Blocks in Colombia 86
8.9 Ecopetrol Leads Oil and Gas Production in Colombia 87
9 Shale Gas in Europe 88
9.1 Heavy Import Dependence for Natural Gas Driving European Countries to Develop Shale Gas Resources 88
9.2 European Shales Attract Keen Business Interest Regionally 89
9.3 Poland and France are Key Geographies for Shale Gas Development in Europe 90
9.3.1 Key Gas Shale Exploration Areas in Europe 90
9.4 Poland and Ukraine offer Favorable Investment Scenarios for Shale Development in Europe 91
9.5 Major Mergers and Acquisitions and Asset Transactions in Gas Shales in Europe 93
9.6 Shale Gas Exploration Increasing in Western Europe 94
9.7 Ukraine and Hungary Represent Highest Shale Gas Potential in Eastern Europe 95
9.8 Poland Leads Shale Gas Development Activities in Europe 96
9.9 Major Companies Operating in the Shale Gas Market in Europe 97
9.10 American International Oil Companies Plan to Leverage their Acquired Expertise in the US Shale Gas Plays 98
9.11 Independent Oil Companies to Play a Key Role in European Shale Gas Market 99
10 Oil and Gas in the Arctic Region 100
10.1 Vast Technically Recoverable Oil and Gas Resources in the Arctic Region 100
10.1.1 The Western Siberian Basin Considered the Largest Petroleum Basin in the World 102
10.2 Oil and Gas Exploration in the Arctic - Key Drivers and Challenges 102
10.2.1 Substantial Oil and Gas Reserves and Advanced Offshore Drilling Technologies to Enable International Oil Companies to Increase Exploration Activities in Arctic Region 102
10.2.2 Shrinking Ice Cover in the Arctic to Lead to Increased Exploration and Drilling Activities 103
10.2.3 Russian Government's New Tax Approach to Strengthen Incentives for Offshore Operations 103
10.2.4 Environmental Issues May Hamper Exploration Activities in the Arctic Region 103
10.2.5 Environmental Groups Oppose Exploration in the Arctic Region 104
10.2.6 Harsh Climatic Conditions in the Arctic Affect Infrastructure Development Activities 104
10.2.7 Territorial Disputes Affect Oil and Gas Development in Arctic 105
10.3 Rosneft Co-operates with International Oil Companies to Explore and Develop Arctic Resources and Venture into Other International Projects Operated by International Oil Companies 105
10.3.1 Rosneft and ExxonMobil Co-operate on Exploration and Production Activities in Kara Sea and Western Siberian Basin 105
10.3.2 Rosneft and Statoil have Entered into an Agreement to Carry Out Exploration Activities in the Barents Sea and the Sea of Okhotsk 106
10.3.3 Rosneft and Eni Sign Agreement for Exploration in the Black Sea and Barents Sea 106
10.4 ExxonMobil. Statoil, Cairn Energy, Shell and BP are some Major International Oil Companies Involved in the Exploration of Oil and Gas in the Arctic Region 107
10.4.1 ExxonMobil's Arctic Operations Span Canada, the US (Alaska), Greenland and Russia. 107
10.4.2 Statoil Takes Strategic Approach to Increasing its Presence in the Arctic 107
10.4.3 Cairn Energy Focuses on Exploration Efforts in Greenland Arctic Region 108
10.4.4 Royal Dutch Shell Plc among the Leading Companies Focusing on Exploration in the Arctic Region 108
10.4.5 BP Plc has Strong Presence in the US and Russian Arctic Regions 109
11 Deep Offshore West Africa 110
11.1 Angola and Ghana Lead Deep Offshore Oil and Gas Exploration in West Africa 110
11.2 Nine Deep Offshore Discoveries in West Africa in 2012 (Until September) 111
11.3 Offshore Oil and Gas Production in West Africa Accounted for 74.3% of the Region's Total Production in 2011 112
11.3.1 Offshore Oil and Gas Production in West Africa is Expected to Increase at an Annual Average Growth Rate of 3.8% Between 2011 and 2020 114
11.4 Deep Offshore Oil and Gas Sector in West Africa - Key Drivers and Challenges 115
11.4.1 Potential for Pre-Salt Discoveries in Deep Offshore West Africa 115
11.4.2 The Gulf of Guinea will Continue to be a Key Region for the Exploration and Production of Oil and Gas in Deep Offshore West Africa 117
11.4.3 Floating Production Storage and Offloading Vessels to Play Key Role in Unlocking the Potential of Oil and Gas Fields in Deep Offshore West Africa 118
11.4.4 Increasing Piracy Attacks are Affecting Oil and Gas Exploration and Production Operations in Offshore West Africa 119
11.5 Equatorial Guinea Offers Attractive Fiscal Terms for Oil and Gas Exploration and Production in West Africa 120
11.6 Major Deep Offshore Oil and Gas Companies in West Africa - A Competitive Landscape 122
11.6.1 Sonangol has Equity Stakes in the Largest Number of Active Offshore Exploration Blocks in West Africa 122
11.6.2 ExxonMobil Recorded the Highest Oil and Natural Gas Production in Offshore West Africa in 2011 123
12 Oil and Gas in East Africa 124
12.1 Tanzania has the Highest Number of Sedimentary Basins Among Key Emerging Exploration Markets in East Africa 124
12.2 Kenya, Tanzania and Mozambique are among the Leading Emerging Exploration Markets in East Africa 126
12.3 Mozambique and Tanzania Lead East Africa in terms of Number of Discoveries in 2012 (Until September) 127
12.4 Emerging Exploration Markets in East Africa Offer Competitive Fiscal Terms 128
12.5 Emerging Oil and Gas Exploration Markets in East Africa, Key Drivers and Challenges 129
12.5.1 Increasing Global Oil and Gas Demand to Drive Exploration Activities in East Africa 129
12.5.2 Increasing Hydrocarbon Discoveries in East Africa to Prompt Exploration Activities in the Region 129
12.5.3 Political and Economic Uncertainties to Hinder E&P Activities in East Africa 130
12.6 Hydrocarbon Potential in East Africa Attracts a Number of Oil and Gas Companies 130
12.6.1 Heritage Oil Plc and Ophir Energy Plc Limited are Key Exploration Companies in Tanzania 131
12.6.2 Sasol Petroleum International Pty, Limited and Anadarko Petroleum Corporation are Key Exploration Companies in Mozambique 132
12.6.3 Tullow Oil Plc Among the Major E&P Companies in Kenya 133
12.6.4 SouthWest Energy, Africa Oil Corporation and Calvalley Petroleum Incorporated are Key Exploration Companies in Ethiopia 134
12.6.5 Tullow Oil Plc Among the Major Exploration Companies in Uganda 135
13 Appendix 136
13.1 Market Definition 136
13.2 Abbreviations 137
13.3 Sources 139
13.4 Methodology 140
13.4.1 Coverage 140
13.4.2 Secondary Research 140
13.5 Contact Us 140
13.6 Disclaimer 141
List of Tables
1.1 List of Tables
Table 1: Exploration and Production Industry, Gulf of Mexico, Major Crude Oil Production Fields in the Deepwater Gulf of Mexico* (mmbbl), 2011 22
Table 2: Bakken Shale, Major Companies By Acreage, Canada and the US, Net Acres, 2012 30
Table 3: Oil Sands Industry, Canada, Bitumen and Synthetic Production from Oil Sands in Athabasca, Cold Lake and Peace River Areas (mmbbl), 2006-2011 47
Figure 34: Extra Heavy Crude Oil Industry, Venezuela, Extra-heavy Crude Oil Production (mmbbls), 2007-2011 75
Figure 35: Oil and Gas Industry, Colombia, Exploratory Wells Drilled and Technical Success Rate (%), 2002-2011 80
Figure 36: Exploration and Production Sector, Colombia, Value and Number of M&A and Asset Transactions (US$MM), 2007-September 2012 81
Figure 37: Oil and Gas Exploration Market, Global, Top Countries by Oil and Gas Discoveries, 2007-November 2012 83
Figure 38: Oil and Gas Exploration and Production, Colombia, Major Companies by Oil and Gas Production (mmboe), 2011 87
Figure 39: Western Europe, Major Shale Gas Basins, Location Map, 2011 94
Figure 40: Eastern Europe, Major Shale Gas Basins, Location Map, 2011 95
Figure 41: The Arctic Sea, Distribution of Undiscovered Oil and Natural Gas Resources, 2012 101
Figure 42: Oil and Gas Exploration and Production Industry, West Africa, Offshore Oil and Gas Discoveries By Country, 2009-September 2012 110
Figure 43: Oil and Gas Exploration and Production Industry, West Africa, Share of Offshore Production in Total Oil and Gas Production* (%), 2001-2011 112
Figure 44: Oil and Gas Exploration and Production Industry, West Africa, Offshore Oil and Gas Production Share (%) Compared to Growth (%) of Top Five Countries, 2001-2011 113
Figure 45: Oil and Gas Exploration and Production Industry, West Africa*, Forecast Production of Oil and Natural Gas from Offshore Fields (mmboe), 2011-2020 114
Figure 46: Oil and Gas Exploration Industry, West Africa and Brazil, Similarities Between Pre-salt Geologies of Deep Offshore West Africa and Deep Offshore Brazil, 2012 115
Figure 47: Oil and Gas Exploration and Production Industry, West Africa, Location of Gulf of Guinea, 2012 117
Figure 48: Floating Production Storage and Offloading Industry, West Africa, Floating Production Storage and Offloading Crude Oil and Natural Gas Production Capacity of the Top Three Countries (mmboe), 2011 118
Figure 49: Oil and Gas Exploration and Production Industry, West Africa, Top 10 Equity Stake Holders in Offshore Active Exploration Blocks of West Africa, 2011 122
Figure 50: Oil and Gas Production Industry, West Africa, Top 10 Offshore Oil and Natural Gas Producers in West Africa* (mmboe), 2011 123
Figure 51: Oil and Gas Exploration Industry, East Africa, Number of Sedimentary Basins by Key Country, 2012 124
Figure 52: Oil and Gas Exploration Industry, East Africa, Number of Active and Planned Exploration Blocks by Key Countries, 2012 126
Figure 53: Oil and Gas Exploration Industry, East Africa, Oil and Gas Discoveries by Country, 2010-2012 (Until September) 127
Global Top 10 Emerging Oil and Gas Exploration and Production (E&P) Markets - Market Analysis, Investment Scenario and Production Forecasts to 2020 published by GlobalData in January 1, 2013. This report consists of Pages: 141 and the price starts from US $ 3995.
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Global Information Inc. would like to present a new market research report, "Global Top 10 Emerging Oil and Gas Exploration and Production (E&P) Markets - Market Analysis, Investment Scenario and Production Forecasts to 2020" by GlobalData.
Deepwater Drilling in the Gulf of Mexico Nearing Pre-Blowout Levels
Deepwater drilling in the US Gulf of Mexico (GoM) is expected to return to the levels recorded before April 2010. The US Bureau of Safety and Environmental Enforcement (BSEE) granted 61 new deepwater well drilling permits between March 2011 and February 2012, which was only six fewer than the amount recorded over 2009 and 2010. With 117 new drilling permits issued up until September 2012, it appears possible that deepwater drilling permits in the GoM will have reached the same level as in 2009 by the end of 2012.
The figure below illustrates the new deepwater drilling permits issued for the GoM between 2009 and September 2012.
The 117 new drilling permits issued up until September 2012 was a high total, considering that in 2011 and 2010 the US government issued 79 and 74 new permits, respectively. The number of permits issued in 2010 and 2011 was low due to the deepwater horizon incident and the subsequent six month moratorium imposed by the US government on drilling in certain areas of the GoM. According to BSEE, the average approval time for a new deepwater well permit in 2009 was nearly 46 days. The approval time more than doubled to 97 days between March and September 2011. However, the average time declined to 62 days between September 2011 and March 2012, demonstrating a reduction in approval times and a gradual return to pre-blowout levels.
Eagle Ford Shale an Emerging Major Crude Oil Production Hub in the US
The Eagle Ford shale is a sedimentary shale rock formation spanning 23 counties in south and east Texas in the US. Core counties in the Eagle Ford shale play include the Gonzales, Webb, and De Witt counties. The play is around 400 miles long and 50 miles wide and stretches across Texas from the Mexican border, covering around 20 fields in the Eagle Ford shale. Some of the most promising prospective oil and gas fields in the Eagle Ford shale include the Eagleville, Hawkville, Briscoe Ranch, Giddings, De Witt, Gates Ranch, and Sugarkane fields.
In recent years, a number of oil and gas companies have identified the Eagle Ford shale as a lucrative destination due to the increasing production of crude oil at the site. The northern part of the Eagle Ford play is endowed with abundant crude oil resources. Since 2008, the development of the crude oil window at the Eagle Ford play has increased considerably, due primarily to the disparity between crude oil and natural gas prices. Some of the oil fields in the Eagle Ford play with the most potential include Eagleville, Briscoe Ranch, Giddings, Dilworth, Pilgrim, and Flashing. The Eagle Ford play is comprised largely of condensates and dry gas resources.
The Eagle Ford shale has an average thickness of around 250 feet (ft) and is situated between the Austin Chalk formation and Buda Lime formation at average depths of between 4,000ft and 12,000ft.
Canada has Third Largest Proved Oil Reserves in the World, of which more than 96% is Oil Sands
Oil sands are located in a number of regions of the world such as Canada, Russia, the US and Venezuela. Canada possesses the largest oil sand deposits worldwide. Oil sands are a key strategic natural resource in Canada, most of which are located underneath sections of muskeg soils, prairie lands and boreal forests.
According to the BP Plcs Statistical Review of World Energy 2012, Canada is ranked third in the world in terms of proved oil reserves. The country recorded 175.2 billion barrels (bbl) of proved oil reserves at the end of 2011, of which 169.2 billion bbl of reserves were available as oil sands. It is also estimated that 25.9 billion bbl of proved oil sands reserves were under development in Canada at the end of 2011. This implies that Canada still has substantial scope to further extract oil from its oil sands reserves in future.
Oil sands in Canada are located primarily in the western part of the country in the Athabasca, Cold Lake and Peace River deposits. Apart from Fort McMurray in the Athabasca deposit, oil sands are generally found at greater depths (generally greater than 200ft). Near Fort McMurray, oil sands are found at the surface.
Santos Basin Holds Highest Volume of Hydrocarbon Reserves within the Brazilian Subsalt Region
The Santos basin is one of the most prominent basins for subsalt Exploration and Production (E&P) in Brazils offshore region. The basin represents the highest estimated volume of hydrocarbon reserves within the Brazilian subsalt region. As of October 2012, 43 active new exploration and extension blocks exist in the basin, representing a total of 22,424.8km2 of active exploration acreage. BM-S-11, BM-S-8, BM-S-10, BM-S-9, BM-S-24, BM-S-8, BM-S-29, BM-S-21 and BM-S-12 are some major active exploration blocks in the Santos basin.
As of October 2012, 98 blocks are in the planning stages for exploration activities in the Santos basin. These blocks represent a total acreage of 27,315km2. S-M-625, S-M-746, S-M-1000, S-M-1002, S-M-986, S-M-998, S-M-1113, S-M-1115 and S-M-1127 are some of the key blocks planned in the Santos basin.
In 2007, a consortium of Petrobras SA, Petrogal and BG Group discovered substantial oil reserves in the Tupi field in the Santos basin. Following this, several discoveries have been made in the basin including Iracema, Iara, Libra, Carioca, Franco and Guara. The Tupi discovery alone represents estimated reserves of between five and eight billion bbl of oil. Iracema represents an estimated 1.8 billion barrels of oil equivalent (boe) of recoverable reserves.
Venezuela is the Second Largest Developer of Extra Heavy Oil Reserves Worldwide after Canada
Venezuela is the second largest developer of extra-heavy oil reserves in the world after Canada. Unconventional oil reserves in Venezuela are technically not considered as bitumen reserves but rather as extra-heavy oil reserves. Although Venezuelas unconventional reserves have very low American Petroleum Institute (API) gravity, they are not as degraded as Canadian oil sands. Furthermore, Venezuelas unconventional deposits have high temperatures ranging from 40 to 50 degrees Celsius, compared to freezing temperatures in Alberta, Canada. Due to these high temperatures, Venezuelas unconventional deposits have higher viscosity and are easier to extract than deposits in Canadian oil sands.
A major difference between the Canadian oil sands and Venezuelan extra-heavy oil deposits is the lack of technology and capital for the construction of heavy oil refineries and upgraders. Although Venezuela has made attempts to attract foreign investments to the extra-heavy oil industry in the country, the initiative was only partly successful due to the renationalization of the oil industry in the country in 2007. After Venezuela made attempts to attract foreign investments, major International Oil Companies (IOCs) such as Statoil ASA and ExxonMobil entered into partnerships with the Venezuela National Oil Company (NOC), Petroleos de Venezuela, SA (PdVSA), for extra-heavy oil projects in the Ornico oil belt. However, following renationalization in 2007, a mandate was introduced for new joint ventures with a minimum of 60% stake for PdVSA. As a result, companies such as ConocoPhillips and ExxonMobil withdrew from their heavy oil operations in Venezuela. On the other hand, some companies such as Total SA and Statoil have chosen to continue the development of their projects in partnership with PdVSA.
Substantial Foreign Direct Investment for the Colombian Petroleum Sector over Recent Years
As a result of the strength of global demand for Colombian commodities such as oil and gas, the country has also been able to attract substantial Foreign Direct Investment (FDI) in the petroleum sector. Many oil and gas companies have invested in the country, such as Chevron Corporation, Pacific Rubiales, Gran Tierra Energy and Petrominerales.
Colombias petroleum sector is expected to observe a continued flow of FDI into the petroleum sector in future, as demand for oil and gas is expected to continue to increase in the global market. In December 2011, Chevron renewed an agreement with PdVSA in 2007 for the supply of gas from Colombia to Venezuela. This extension of the agreement indicated that foreign investors continue to be optimistic about the prospects of Colombias petroleums sector.
Poland and France are Key Geographical Locations for Shale Gas Development in Europe in Terms of Resource Potential
Global technically recoverable shale gas resources amount to an estimated 185 trillion cubic meters (tcm). China holds the largest estimated shale gas resources, accounting for 19% of the global total. Of all countries worldwide, the US probably has the most accurately estimated resources, accounting for 13% of the global total. European countries with known shale gas reserves account for a collective share of almost 10% of the global total.
Shale gas development within Europe is currently limited to estimates of potential resources in place. With technology advancing and new information becoming available, the regions estimates are also changing over time. Drawing inspiration from shale success in the US, European countries are optimistic about their own domestic reserves. However, differences in rock formations and shale characteristics to those in the US will be key challenges faced by European countries.
Shale gas exploration activities in Europe are currently largely confined to Austria, Germany, Hungary, Ireland, Poland, Sweden and the UK. More than half of the estimated shale gas reserves in the region are located in Poland and France. Poland possesses overall technically recoverable reserves between 346 billion cubic meters (bcm) and 768bcm, whereas France possesses estimated shale gas reserves of five tcm.
Western Siberian Basin Considered the Largest Petroleum Basin in the World
Of the 33 oil and gas provinces in the Arctic region, the majority of resources are located in basins in Amerasia, Arctic Alaska, east Barents, east Greenland, west Greenland east Canada, east Greenland Rift, west Siberian and Yenisey-Khatang. These seven basins account for an estimated share of more than 80% of undiscovered oil and gas resources in the Arctic region.
The western Siberian basin is considered the largest petroleum basin in the world, representing approximately 132.57 billion boe. The basin covers an area of around 2.2m km2. According to the United States Geological Survey (USGS), the amount of technically recoverable resources in the basin is estimated at around eight billion bbl of crude oil, 670 trillion cubic feet (tcf) of natural gas and 21 billion bbl of Natural Gas Liquids (NGL). Exploration activities in the basin have resulted in the discovery of 10 oil and gas fields. Of these discoveries, Urengoy gas field and Samotlar oil field are some of the largest. Urengoy gas field is the largest discovery, representing more than 350tcf of estimated reserves. Samotlar oil field contains an estimated 28 billion bbl of oil.
The Arctic Alaska basin holds the largest estimated oil deposits in the region, with approximately 30 billion bbl of oil. The second largest oil province is the Amerasia basin, which possesses approximately 9.72 billion bbl of crude oil. The east Greenland Rift basin is the third largest oil province, containing an estimated 8.9 billion bbl of crude oil.
Angola and Ghana Lead Deep Offshore Oil and Gas Exploration in West Africa
The systematic exploration of hydrocarbons in the deepwater regions of offshore Africa started in the Congo basin in 1994. Deepwater oil and gas activity in West Africa extends from Mauritania to Angola.
Angola is the most important country for the exploration of oil and gas in deep offshore West Africa. Of the 52 oil and gas discoveries made in offshore West Africa between 2009 and September 2012, Angola accounted for 18 or 34.6% of the total discoveries made in West Africa. The abundance of oil and gas reserves in offshore areas has helped Angola to emerge as one of the most important countries in Africa for the exploration of oil and gas. After Angola, Ghana recorded the second largest number of discoveries between 2009 and September 2012. 13 discoveries were made in the country during this period.
Crude oil was first discovered in Angola in the 1970s. The countrys initial oil discoveries were made in the offshore Kwanza basin. Later, offshore regions accounted for the majority of oil and gas discoveries in the region. Aside from its shallow and deep offshore regions, discoveries are being made in Angola even in ultra deep and pre-salt regions.
Mozambique and Tanzania Lead East Africa in terms of Number of Oil and Gas Discoveries up until September 2012
Mozambique and Tanzania lead East Africa in terms of the number of discoveries made up until September 2012, with six discoveries in each country. Two discoveries were made in Kenya in the same period.
Up until September, six natural gas discoveries were made in Tanzania in onshore and offshore areas in 2012. Most of these discoveries were made in the offshore region of the Mafia, Mandawa and Ruvuma basins. BG Group has been involved in exploration activities that have resulted so far in the discovery of five offshore natural gas reserves in Tanzania. These discoveries include Jodari-1 and Mzia-1 in block 1. Statoil ASA and ExxonMobil Exploration and Production Tanzania Limited are involved in exploration discoveries including Lavani and Zafarani-1 in block 2.
In Mozambique, the majority of oil and gas discoveries have been made by Anadarko Petroleum Corporation and ENI SpA, primarily in exploration areas 1 and 4. Anadarko Petroleum Corporation has made eight discoveries in Mozambique, in the Rovuma basins exploration area 1. Most of the discoveries related to natural gas reserves. ENI has made four natural gas discoveries in exploration area 4, located in offshore Mozambique.
Two oil and gas discoveries were made in Kenya up until September 2012: Mbawa 1 and Ngamia-1. Tullow Oil plc made both discoveries.