Oil exploration up in the air as prices dive

The coronavirus pandemic that has slammed oil demand and prices is forcing energy majors to tighten their belts on exploration, even if finding new deposits remain essential to their existence.

While the sector is increasingly diversifying into greener energies such as electricity and wind power, its core business remains oil and gas.

“Questions abound over whether it is still profitable to look for oil given subdued demand growth prospects and a low-price environment,” Stephen Brennock, analyst at oil brokers PVM, told AFP.

“The answer seems not, judging by the recent spate of massive hydrocarbon asset writedowns.
“Set against this backdrop, I don’t expect a rebound in drilling in the medium-term.