The low oil prices may lead to significant structural changes in the upstream oil and gas industry. The past 10 years of high prices have ushered in an era of accelerated oil and gas exploitation in complex and remote settings, with many smaller players pursuing unconventional hydrocarbons. However, with oil prices back at around $40 per barrel, many high-cost and technically complex projects are being deferred or cancelled, presenting a reserves replacement challenge for International Oil Companies (IOCs) that is not faced by many National Oil Companies (NOCs).
