The energy industry is constantly evolving and is currently facing a growing demand for energy sources and market construction. However, the search for new deposits of fossil fuels such as oil and gas is intensifying despite global efforts to mitigate climate change. Large companies in the sector, such as those linked to oil and gas, are reinvesting part of the record profits from the increase in fossil fuel prices, driven by conflicts in Eastern Europe.
While there is pressure from activist investors for oil companies to be more aligned with efforts to reduce carbon emissions, most energy companies see oil and gas exploration as a more reliable source of profit compared to renewable energy production. Historically, oil and gas projects have had higher returns than renewable energy projects. In addition, the recent increase in oil and gas prices, driven by geopolitical conflicts, resulted in record profits for large energy companies, further strengthening confidence in exploration. offshore high risk and high cost.
The exploration activity offshore and drilling is forecast to grow in the years to come, with a projected increase of 20% through 2025. This has already contributed to rising daily drilling rig rental rates, reaching the highest levels since the 2014 crisis in the drilling markets. commodities. The International Energy Agency forecasts an increase in global investments in oil and gas in 2023, reaching the highest level since 2015. Furthermore, Wood Mackenzie estimates that up to US$ 185 billion will be invested in the development of 27 billion barrels of oil reserves.
This increase in exploration is not limited to traditional areas such as Namibia which has aroused great interest following the discoveries made by Shell and TotalEnergies off its coast. BP is also stepping up its exploration activities in the Gulf of Mexico. While exploration is a long-term, high-risk business, big energy companies see it as a reliable source of profit and are focusing on economies of scale to reduce the amount of energy needed to extract each barrel of oil and limit emissions.
