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Highlights
- New oil fields may outperform older ones in emissions and efficiency.
- Advanced exploration supports decarbonization and resource optimization.
- Modern fields exhibit lower Scope 1 and 2 emissions intensity.
The global energy landscape is evolving, with significant advancements in oil exploration and production offering opportunities to reduce emissions while meeting global energy demand. Recent insights from Wood Mackenzie's Horizons report highlight how new oil fields can outperform older ones in terms of emissions and operational value, showcasing the critical role of exploration in the ongoing energy transition.
The report underscores a notable decline in petroleum exploration investment over the past decade, with spending reduced by two-thirds. Despite this reduction, the energy sector remains pivotal in decarbonization efforts, supporting the global supply chain and enhancing efficiency during the transition to sustainable energy sources. According to the report, the industry holds approximately 3 trillion barrels of oil equivalent (boe) inventory, ensuring ample resources to meet current and future energy needs.
Lower Emissions Through Innovation
Wood Mackenzie highlights that modern decarbonization technologies and higher throughput capabilities in newly developed oil fields can significantly reduce Scope 1 and 2 carbon dioxide emissions. Newly discovered fields poised for production between 2025 and 2030 are projected to achieve an emissions intensity of 17 kilograms CO2 equivalent per boe. This is a marked improvement compared to the 28 kilograms typically associated with older, mature fields.
Importantly, these advancements do not drive additional demand. As noted in the report, demand remains consistent regardless of exploration outcomes. Instead, investments in modern oil fields aim to replace less efficient, high-emission alternatives.
Exploration’s Role in the Energy Transition
New oil fields are expected to account for a significant portion of the global energy supply, contributing 12% of total oil and gas production by the end of the decade. This contribution could result in a 6% reduction in global Scope 1 and 2 emissions by 2030, assuming new fields displace older, higher-emission sources.
The report further emphasizes that exploring and developing new fields remains a cost-effective strategy for energy companies seeking to enhance their portfolios. Unlike acquiring existing assets, which can come with significant price tags, discovery efforts yield high-value, low-carbon resources that align with decarbonization goals.
As the energy industry navigates its path toward sustainability, advancements in oil exploration and the development of modern fields offer a clear route to reducing emissions while maintaining efficiency and supply security.
