Two key factors constrain global oil and gas exploration (limitations in energy resource development and a shortage of human resources)

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:Call: Driven by high prices of oil and gas, the global exploration and extraction industry will remain active this year, but it will face some challenges in 2008. 　　A special report published in the American journal Oil & Gas Journal, authored by Allen Pechette, states that exploration and extraction activities will be constrained by restrictions on such activities in certain resource locations, as well as a shortage of skilled personnel. 　　Human resources factors are the most pressing issue; over the next 5 to 10 years, retirees will account for a significant proportion in oil companies. The launch of the super-large Kashagan oil field in Kazakhstan’s Caspian Sea region has been delayed due to a shortage of manpower. ConocoPhillips CEO James Mulva told Business Week, “A lack of new talent is the biggest threat to the company’s long-term development.” ” 　　According to a survey conducted by Citibank’s investment research team in December last year among 247 companies, global exploration spending in 2008 is expected to reach $354 billion, representing an increase of 9.3% compared to 2007. The top 10 companies in terms of expenditure will account for 44% of the total spending. Chevron’s budgeted expenditure for 2008 was $23 billion, an increase of 15% compared to the previous year ； ConocoPhillips is $11 billion, an 8% increase from the previous year. BP plans to invest $6 billion per year over the next 10 years, while Saudi Arabia expects to invest $30 billion over the next 5 years. 　　In 2008, 90 major upstream oil and gas projects around the world will come online or reach their peak production levels, compared to 68 such projects in 2007. BP CEO Tony Hayward said that thanks to new technologies such as horizontal drilling, mixed-phase flooding, and gas-boosted water injection, the recovery rate in Alaska can be increased to 60%. The United States ranks second in the world in terms of oil and gas reserves, and even after more than a century of extraction, its remaining oil and gas reserves still place it fifth in the world. 　　However, Rex Tillerson, Chairman and CEO of ExxonMobil, said that there is a huge demand in the global energy market, and the existing scale of the energy industry is insufficient to meet it. The world’s current daily energy consumption amounts to 31.51 million tons of oil equivalent, which is equivalent to 130 tons being used per second. ExxonMobil is the world’s largest non-energy company and has the highest market capitalization; however, its oil and gas production accounts for less than 2% of the world’s total energy output. 　　Based on the feedback from the surveyed companies, in terms of their impact on exploration and extraction investment plans, horizontal and directional wells rank first, followed by seismic surveys and computer-aided exploration. However, more than half of the feedback still considered earthquakes and computer-aided exploration to be the most important.