Exploration Falls Below 1952

In 2015 the number of new oil discoveries fell to the lowest number recorded since 1952. Morgan Stanley analysts noted that as energy companies slashed their exploration budgets in 2015 in response to low oil prices, a gap was created for meeting future demand. In 2015, 2.8 billion barrels of oil outside the U.S. was discovered, which is equivalent to only one month’s global consumption. Discoveries in the U.S. shale plays in the past decade have risen to 12.1 billion barrels. However, worldwide new discoveries are still the lowest since 1952. In 1952 the oil and gas industry was only one-seventh its current size.