“Conventional wells not being drilled now won’t be producing later on.” Over the past decade, the U.S. oil and gas sector has emphasized developing short-cycle-time unconventional projects rather than wildcat drilling that targets potentially more bountiful conventional plays. In a recent report, IHS Markit concludes the trend toward unconventional projects has caused the number of conventional discoveries to plunge to a 70-year low. As this chart from IHS Markit shows, the number of conventional new field wildcat (NFW) appraisal and development wells outside Onshore U.S. and Canada lagged behind the number of U.S. unconventional wells from 2013 to 2018 save for two years. Although unconventional projects give oil and gas firms more flexibility in responding to market changes, the wide disparity in depletion rates between unconventional and conventional wells could become particularly evident in years to come given the shortfall in conventional reserves additions. “You’re taking from the future […]