The New York Times
The oil industry has been on a hot streak this year, thanks to a series of major discoveries that have rekindled a sense of excitement across the petroleum sector, despite falling prices and a tough economy.
These discoveries, spanning five continents, are the result of hefty investments that began earlier in the decade when oil prices rose and of new technologies that allow explorers to drill at greater depths and break tougher rocks.
More than 200 discoveries have been reported so far this year in dozens of countries, including northern Iraq's Kurdish region, Australia, Israel, Iran, Brazil, Norway, Ghana and Russia.
They have been made by international giants, like Exxon Mobil, but also by industry minnows, like Tullow Oil.
Just this month, BP said it found a giant deep-water field that might turn out to be the biggest oil discovery ever in the Gulf of Mexico, while Anadarko Petroleum announced a large find in an "exciting and highly prospective" region off Sierra Leone.
It is normal for companies to discover billions of barrels of new oil every year, but this year's pace is unusually brisk. New oil discoveries have totalled about 10 billion barrels in the first half of the year, according to IHS Cambridge Energy Research Associates.
If discoveries continue at that pace through year-end, they are likely to reach the highest level since 2000.
Although recent years have seen speculation about a coming peak and subsequent decline in oil production, people in the industry say there is still plenty of oil in the ground, especially beneath the ocean floor, even if finding and extracting it is becoming harder.
They say prices and the pace of technological improvement remain the principal factors governing oil production capacity.
While the industry is celebrating the recent discoveries, many executives are anxious about the immediate future, fearing that lower prices might jeopardize their exploration drive.
The world economy is weak, oil prices have tumbled from last year's records, corporate profits have shrunk and global demand for oil remains low. After falling to $34 (U.S.) in December, oil prices have doubled, stabilizing near $70 a barrel. But if the world economy does not pick up, some analysts believe the price could fall again.
Oil companies contend that is not a prospect they can afford. Despite reaping record profits in recent years, many executives have warned that they need prices above $60 a barrel to develop the world's more challenging reserves.
In fact, some exploration activity has already slowed this year as producers seek better terms from service companies and contractors.
Exploration spending swelled in recent years, partly to offset a doubling of costs throughout the industry – from steel prices to the cost of renting deep-water drilling rigs.
A big issue confronting the industry now is how to drive down costs while maintaining a high level of exploration.
On average, costs have fallen by 15 to 20 per cent from their peak, according to petroleum executives.