Oil Giants Stop Looking: Discoveries Crash to 40-Year Low

The world's oil and gas companies are finding far less new fuel. New discoveries dropped to their lowest level in 40 years, according to industry data. The cause is simple: companies are cutting back on exploration spending. Exploration is the search for new oil and gas fields. It is expensive and risky. Companies drill test wells, often in deep oceans or remote areas. Most wells find nothing. After recent price crashes, oil and gas companies changed their priorities. They now spend less on finding new fields. Instead, they focus on existing projects and return money to investors. This trend worries energy analysts. Less exploration today means fewer new supplies in the future. Demand for energy keeps growing worldwide. A supply shortage could push prices up sharply in the coming years. For now, companies show no plans to increase exploration budgets. The 40-year low may not be the bottom.