Although exploration drilling has declined throughout the world during the last decade, the discoveries and reserve additions have more than matched production, says IHS Energy in its "2003 World Petroleum Trends" report. Upward revisions to previous estimates of reserves were responsible for three quarters of reserve additions, while new discoveries accounted for the remaining quarter. In 2002, daily worldwide production of liquids was 73.2 million per day, and daily gas production was 267.4 billion cubic feet (Bcf). That represents a 0.7% decline in liquids production and 2.5% increase in gas production from 2001. IHS Energy estimates that the world currently holds remaining reserves of 1,153 billion barrels of liquids and 6,662 trillion cubic feet (Tcf) of conventional natural gas reserves. The reserve-to-production ratios are 43 years for liquids and 68 years for gas. Last year was sluggish for exploration, however. IHS reports 956 new-field wildcats were drilled around the globe, excluding North America, down from the 1,147 in 2001. There were 397 discoveries in 2002, 58% of which found oil and 42%, gas. The 2002 wildcats discovered 6.6 billion barrels of liquids and 30 Tcf of gas. In 2001, estimates are that 10.1 billion barrels of liquids and 48 Tcf of gas were discovered. Seismic activity was also slow. Outside of North America, both 2-D and 3-D seismic activity decreased in 2002 by 37% and 16%, respectively, compared with 2001. Also in 2002, the numbers of new license awards made decreased 5% compared with 2001. The industry made just two giant discoveries in 2002: Murphy Oil's Kikeh, offshore Sabah in Malaysia, and Tomoporo 9, in Venezuela's Maracaibo Basin. Eight other discoveries are likely to exceed 200 million barrels equivalent: gas discoveries Dhirubai 1 and 3 in India; gas and condensate discovery Dorado in Venezuela; oil and gas discovery Cachalote in Brazil; oil and gas finds Usan, Doa and Bolia in Nigeria; and oil and gas find Ca Ngu Van in Vietnam. -Peggy Williams

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