New Zealand’s government has awarded the first offshore oil and gas exploration license after last year lifting a ban on drilling, put in place by the previous government that wanted to focus on a transition from hydrocarbons to electricity from low-carbon sources. The new government, however, is focusing on energy security, and last year removed the ban, inviting companies to bid for its oil and gas resources. Now, Australian oil and gas firm EnZed Energy has become the first to tap New Zealand’s offshore oil and gas resources after…
Industry Background
Upstream activity across major producing basins continues to reflect the balance between capital discipline and the operational pressures of sustaining output. U.S. shale plays — particularly the Permian Basin — remain the swing producer of last resort in global markets, with rig count data serving as a leading indicator for future production volumes.
Exploration and production companies are increasingly focusing on high-return, low-breakeven assets, prioritizing inventory depth in proven basins over frontier exploration spending as investor expectations for free cash flow generation remain elevated.
What to Watch
Market participants will be monitoring rig count trends, quarterly earnings guidance from major E&P operators, and any production adjustment announcements from OPEC+ members for signals on near-term supply trajectory.
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