A recent report from the International Energy Agency (IEA) has highlighted a growing challenge facing the oil and gas industry: even maintaining current levels of production will require increased investment. The findings show that output from existing oil and gas fields is declining at a faster rate than before, underscoring the importance of continued funding and smarter use of technology.

The report notes that conventional oil fields are now declining at an average rate of 5.6 per cent per year once they have reached peak production. Without sufficient investment and the introduction of appropriate technologies, output from these sites will continue to fall, potentially leading to significant supply issues. This challenge is intensified by greater reliance on unconventional resources, such as shale, which typically experience much steeper decline rates.

These trends raise important questions around energy security. At the same time, the industry is navigating the global transition towards net-zero. While decarbonisation is clearly the right direction, the IEA recognises that a complete and immediate shutdown of oil and gas production is neither realistic nor desirable. Around 20 per cent of current supply levels are still expected to be required to meet ongoing energy demand, even as the transition progresses.

As a result, making better use of existing assets is becoming increasingly important. Extending the productive life of current fields and finding new ways to extract remaining resources after peak production will play a key role in ensuring supply continuity during the energy transition.

Balancing climate ambitions with the long lead-times and operational realities of the oil and gas sector remains complex. However, acknowledging that the industry can contribute meaningfully to the journey towards net-zero is an essential step. Greater collaboration and communication between stakeholders will be critical, alongside the effective use of existing technologies to maximise output from current sites.

And it is the use of existing technology that is the key phrase here. Maintaining production does not necessarily require radical technological breakthroughs. Many of the tools needed are already in use. For example, Coiled Tubing Drilling (CTD) is a proven technology that enables operators to re-enter existing wells without the need for a full drilling rig. This approach reduces costs, minimises disruption, and allows new sidetracks to be drilled from existing wells to access undeveloped parts of reservoirs.

By enabling access to marginal or depleted reservoirs that would otherwise be uneconomical using traditional rigs, technologies like CTD help operators maximise returns from existing assets. This aligns closely with the IEA’s call for increased investment in existing fields as a means of maintaining supply while limiting unnecessary new developments.

As the 2050 net-zero deadline approaches, global energy demand is expected to continue growing rather than decline. Against this backdrop, the IEA’s emphasis on sustained investment in existing oil and gas sites provides a pragmatic pathway forward. With budgets under pressure, the focus is shifting towards fully utilising available resources and technologies to support energy needs during the transition to a greener future.

Author: Clare Miszewska-Hall, Co-CEO, AnTech Ltd

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