Exploration activities within the oil industry could be stopped for a considerable time because of the risks and costs involved

in Project HOPE2 months ago (edited)

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There are countries where it is currently assumed that they contain offshore oil reserves, are reserves of oil and natural gas on a large scale that can represent in economic terms a possibility of income for many of these nations, however the picture takes a considerable turn when analyzed in the current context where the product of the covid-19 pandemic demand for oil worldwide has fallen considerably.

When one has the slightest suspicion of large accumulations of hydrocarbons in some geographical location, however remote it may be, one needs science and technology in conjunction with the best exploration techniques to be able to estimate with a greater percentage of accuracy that the hydrocarbon found in the given area may be commercially extractable and thus be able to initiate drilling activities in the area and the subsequent production of oil and natural gas.

The only way for any country to decide to undertake hydrocarbon exploration activities today is under a profitable scenario as far as oil prices are concerned, this is one of the reasons why I dare say that the oil industry along with countries that have possible oil reserves will not undertake exploration activities.

Oil exploration has as main characteristics to be a business that involves high costs and risks in its operations, another one that is necessary to take into account is that oil and gas exploration activities may require years to reach a satisfactory conclusion based on the possibilities of extraction of such resource and billions of dollars of investment.

Other aspects to consider that make exploration an oil activity not feasible for today is the fact that due to the great pressures on costs and demands on companies to act on climate change, made the exploration was under study and evaluation of the current contemporary criticism. Previously oil exploration was the most glamorous aspect of the oil business, now exploration is one of the most controversial.

Conclusion

From my perspective, in order to make the exploration activity attractive again as it was in the past, it must contemplate within its area the possibility of new technologies that minimize all kinds of risks, both economic, operational and of uncertainty, if it is possible to incorporate a technology that minimizes these risks, it is possible that once this crisis of the covid-19 pandemic passes, the oil industry will be able to trust this activity to certify new reserves both onshore and offshore and thus add proven reserves worldwide, all this without taking into account the environmentalist pressure to which this business is subject.

I just wanted to make a brief and short summary of the reasons why the exploration activities could currently bias their operations until further notice.

Greetings friends, I hope to be very soon sharing my opinions about the environment of the oil economy and its most important activities.

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Yes it can be risky but would be of huge advantage if carried successfully.
Good point to discuss upon :)

Of course, these risks can be worthwhile if seismic studies and exploration through the drilling of exploratory wells show the existence of hydrocarbons in commercial proportions, however, in a current scenario where oil prices have fallen due to low demand for crude due to the corona virus, the activity that immediately stops is exploration, Rehabilitation and repair of wells can remain active, because I even believe that even developing well drilling activities should be stopped, as several OPEC countries, Russia and the United States of America have agreed to lower production quotas.

This is a very important point that you touch upon and that stimulates the exciting and continuous debate, greetings and thank you for commenting.

It is certainly very worrying, but I am confident that companies are taking steps to overcome this pande

This is what the oil industry is supposed to live in constant evaluation about the feasibility of executing exploration activities, greetings and thanks for your contribution.

@tipu curate

Thanks for the support, regards

Excellent information @carlos84 , hydrocarbons have played an important role in the development of humanity in any aspect, this makes that more and more interests exist in relation to any accumulation of oil, for what was described before the world of petroleum engineering goes to the scientific and technological knowledge that has been extended through all our history, today the world of hydrocarbons is living a difficult moment due to the covid-19 pandemic as you expressed it, but it is necessary to wait for things to stabilize the important thing is that the deposits will be waiting to be exploited, thanks for sharing your extensive knowledge.

So is my dear @rbalzan79 as the pandemic passes the hydrocarbon is there waiting to be discovered and exploited in case this business becomes profitable again. Greetings and thanks for your contribution