Exploration drilling is crucial to ensure the long-term viability of any country’s oil and gas industry.  While seismic data surveys and other geological studies can give strong indications of possible accumulations of hydrocarbons, these always need to actually be drilled to determine if there is a viable hydrocarbon reservoir in the rocks deep below the earth’s surface.  

Many exploration wells drilled all around the world are unsuccessful and do not find commercial reserves of oil or gas.   Countries and companies need to have an inventory of possible exploration targets if they are to find the new reserves needed to offset production from existing reservoirs, and they need to drill these possible locations in order to discover additional reserves.   

Even when exploration wells are successful, it might be many years or even decades between a find and the start of commercial production.  Sometimes an exploration well might appear to be successful but when further wells are drilled (appraisal wells) the results are not as encouraging as the initial exploration well suggested.

In order to increase gas production from within Trinidad & Tobago’s economic zone, we need an active and continuous programme of exploration drilling.  To encourage exploration drilling, acreage that is not currently licensed to oil and gas companies needs to be allocated by the Ministry of Energy through bid rounds or direct negotiations.   The Ministry of Energy can also encourage companies to consider drilling exploration wells by collecting and making available data on the geology and possible targets.   

Having the right fiscal, regulatory and commercial environment also encourages companies to consider investing in drilling exploration wells in Trinidad & Tobago.  The availability of an existing downstream gas market with unmet demand is an important fact making exploration of gas more attractive in Trinidad & Tobago than many countries around the world.

The number of exploration wells being drilled is a key metric to determine the long-term viability of our gas and oil industry.