Jan 4, 2018

New report predicts 2018 oil exploration spending will drop

Photo: Daniel Acker / Bloomberg via Getty Images

The consultancy Wood Mackenzie predicts that oil industry investment this year in finding and assessing conventional new discoveries will slip again despite the improved price outlook.

One reason it matters: As global crude consumption keeps rising, some experts say that more robust industry investment in finding and developing conventional sources of oil will be needed to avoid a precarious supply situation in a few years, despite the rise of shale.

"Global investment in conventional exploration and appraisal will be around US$37 billion in 2018. This will be 7% less than 2017 spend of US$40 billion, and over 60% below its 2014 peak," Andrew Latham, a top analyst with the firm, said in a statement.

Go deeper: Reuters chatted with Latham and has a story on the report here, including this synopsis of his analysis which notes that the projected decline in exploration spending "masks a modest uptick in drilling activity as lower rig rates and a focused approach on well-charted basins allow firms to do more with their money." He predicts that "activity will be flat to higher."

Go deeper

Coronavirus updates: First case in sub-Saharan Africa confirmed

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

Nigeria confirmed its first novel coronavirus case in an Italian who flew to Lagos from Milan — the first known case in sub-Saharan Africa. The World Health Organization has been working to prepare Africa's health care systems to be ready for the outbreak, which is now also confirmed in Algeria and Egypt.

The big picture: COVID-19 has killed more than 2,850 people and infected over 83,700 others in some 50 countries and territories. The novel coronavirus is now affecting every continent but Antarctica, and the WHO said Wednesday the number of new cases reported outside China has exceeded those inside the country for the first time.

Go deeperArrowUpdated 1 hour ago - Health

Ad spending on 2020 primary tops $1 billion

Illustration: Aïda Amer/Axios

Spending on the 2020 presidential primary has officially surpassed the $1 billion mark, with more than half of that total coming from billionaire Michael Bloomberg, according to data from Advertising Analytics.

Why it matters: It's the most money that has been spent this early on in an election cycle in U.S. history.

The growing coronavirus recession threat

Illustration: Aïda Amer/Axios

In just a matter of weeks, top economists and investment bank analysts have gone from expecting the coronavirus outbreak to have minimal impact on the U.S. economy to warning that an outright recession may be on the horizon.

What's happening: The spread of confirmed coronavirus cases in Europe, the Middle East and the U.S., and the speed at which they are being discovered has set the table for the outbreak to have a larger and much costlier impact.