Obstacle: Resource Constraints
Discoveries are limited by access to federal lands
- About 80% of federal lands are NOT available for oil and gas exploration and development
- NPC estimates 213 Tcf of gas are subject to prohibitions or impediments in the Rockies and GOM
Relentless reductions in manpower have eroded industry’s capacity to grow organically
- Focus on near-term performance has led to layoffs
- Reduction in professionals entering workforce over the last 15 years limits exploration / exploitation growth potential
- Geoscientists: 67% fewer graduates (3,100 vs 9,500)
- Petroleum Engineers: 90% fewer students (600 vs 6,000)
- Many independent small prospect generators have either retired or been retrained
Mature basins mean industry is finding fewer, smaller fields
- Technological progress can partially offset detrimental effects
- Rockies, GOM Subsalt & Deepwater have greatest potential
Supply growth is limited by land access and human resource constraints.