Source: Fortune.com
Summary
After a 15-year hiatus, Chevron is returning to Libya to explore for oil, marking a shift in the industry’s focus towards global exploration outside of the Americas. This move comes as the US shale oil boom is maturing and global oil demand is still on the rise. Exxon Mobil and other companies are also increasing their exploration efforts in Africa, South America, and other frontier regions.
Our Reading
The numbers tell one story.
Chevron is returning to Libya after 15 years, and Exxon Mobil is also expanding its operations in the region. The industry’s biggest producers are increasing their focus on global exploration outside of the Americas, driven by the maturing US shale oil boom and rising global oil demand.
Patrick Rutty, director of global intelligence at Enverus, said that global exploration is recovering from historically low levels and is expected to drive resource capture to relatively high levels over the next five years.
Chevron’s chairman and CEO Michael Wirth highlighted the global exploration momentum, saying that there’s a broader uptick in interest from countries that want American companies to invest in their resource extraction.
The resource potential in some of these countries is undeniable, and Iraq and Libya are two of the largest resource holders in the world.
Original observation: The industry’s shift towards global exploration is a classic sign of a boom going bust.
Author: Evan Null
