Oil discovery is at an all-time low this year since 1947, according to new information from oil explorers. In 1947, 2.7 billion barrels of new oil supply were discovered, while this year, as of last month, drillers discovered only 736 million barrels of crude oil. World oil exploration expenditure has decreased to $40 billion this year, a 40% decline from 2014, with this figure likely to remain the same through to 2018. Historically, exploration made up 18% of total oil industry expenditures; in 2016, it will account for 13%. Another reason for the decrease in exploration is a decline in drilling due to a lack of new discoveries. Last month, 209 oil wells were drilled, down 69.3% from 2015 and 82.1% from 2014. Currently, oil prices are approximately $50/barrel, less than 50% of 2014 peak prices, due to a surplus of shale oil. Leaders in the oil industry speculate that oil companies will need to invest nearly $1 trillion each year to keep up with rising demand.

Source: Bloomberg