Oil Giants Drilling Deeper

Oil and gas companies have intensified the hunt for new deposits in a long-term bet on demand, as they reinvest some of the record profits from the fossil fuel price surge driven by the Ukraine war, according to data and industry executives.
The exploration revival - on the part of European majors in particular - reflects a renewed commitment to oil and gas after Shell and BP went back on pledges to reduce output and invest in renewables as part of the energy transition, Channelnewsasia.com reported.
It responds to pressure from a majority of investors to maximize their oil and gas profits rather than invest in lower margin renewable energy businesses.
It also defies protests from a minority of activist investors who want oil companies to be more closely aligned with global efforts to mitigate climate change.
The renewed appetite for oil and gas reserves and production is an especially big turnaround for BP, which got rid of most staff from its exploration unit three years ago.
Exploration is a long-term, high-risk business. Big-ticket offshore projects typically take five years to develop from discovery and at least another 10 years to return the initial investment.