Russian Minister Predicts Decline in Global Exploration

Russian Minister Predicts Decline in Global ExplorationRussian Minister Predicts Decline in Global Exploration

Global geological exploration of hydrocarbon reserves is going to decline in 2016 by 10-20%, Russian Minister of Natural Resources and Environment Sergei Donskoi said on Friday.

"Different companies in different regions behave differently, but in reality the general situation goes like this," he said, noting that the trend also applies to Russia, TASS reported.

At the same time, Donskoi believes reduction of geological exploration in unlikely to affect the current production of hydrocarbons.

"I would not connect it," Donskoi said, adding that exploration is a long-term investment and development of deposits that have been discovered, for example this year, "will not take place even in this decade".

Russian companies are already talking about plans to focus on further exploration of already opened and operating deposits.

"Longer wells will be drilled and new missed deposits will open," he said, adding that this is "natural" in reducing the long-term investment in the industry, especially in hydrocarbons.

Donskoi said the ministry, however, tends to reduce the impact of the general situation of long-term investments in the exploration of new fields.

"For our part, we are trying, at least, to make the current situation have a lesser impact on long-term investments in exploration," he said.