According to the International Energy Agency’s 2011 World Energy Outlook, world energy consumption will grow by 53% over the next 25 years. Much of the growth will occur in countries outside the Organization for Economic Cooperation and Development (OECD). According to the U.S. Energy Information Administration, demand in non-OECD nations will increase by 85%, and in OECD countries, by 18%.

The executive director of the IEA, Maria van der Hoven, cautioned, “The world will lock itself into an insecure, inefficient, and high-carbon energy system if there are not immediate steps taken to control consumption. Governments need to introduce stronger measures to drive investment in efficient and low-carbon technologies.”

China is the world’s largest energy consumer: it is projected to consume nearly 70% more energy than the U.S. by 2035, although the per capita demand in China is half that of the U.S. level. Fossil fuels’ share of global primary energy consumption will fall from some 81% currently to 75% in 2035. Renewables will increase from 13% of the mix today to 18% in 2035; the growth in renewable energy is underpinned by subsidies that will rise from $64 billion in 2010 to $250 billion in 2035.

—Larry Prado

1 Argentina

Madrid-based Repsol YPF reported on a shale oil and gas discovery on its operated Loma La Lata Block in Argentina’s Neuquen Province. Repsol estimates that the Vaca Muerta shale may hold up to 937 million bbl. of oil equivalent—the company has surveyed only 428 kilometers of the 12,000-sq.-kilometer area and the reserves could be higher. According to the company, the find increases the group’s overall recoverable reserves by nearly 1 billion bbl. of oil equivalent. The find is approximately 75% oil (40- to 45-degree-gravity API). Operator Repsol YPF holds a 70% interest in partnership with the regional company Gas y Petroleo de Neuquen (15%) and Rovella Energia, 15%.

2 Falkland Islands

A second offshore discovery in the North Falkland Basin was announced by Rockhopper Exploration. The exploration well, #14/10-9, is on the Casper Prospect in Block PL032. The well penetrated multiple targets in Casper, Sea Lion Main Complex (SLMC), and Kermit. In the Casper target, 18 meters of net hydrocarbon pay was encountered and the water saturation averaged 17%, with no oil-water contact observed. In the SLMC target, the well hit 36 meters of net oil pay in a gross reservoir of 62 meters. The Kermit target was water-wet, with oil shows. According to the London-based company, the presence of the gas cap could enhance Casper oil productivity and additional Sea Lion development. Rockhopper will drill a sidetrack to core both the Casper and Sea Lion and will plug and abandon the well. Rockhopper is the operator of the North Falkland Basin Block PLO32 with a 100% interest.

3 Brazil

An exploration well in Brazil found two gas-bearing zones in the Amazon’s Solimoes Sedimentary Basin after formation testing. HRT Participacoes em Petroleo’s #1-HRT-1-AM is in Block SOL-T-170 and production comes from the Carboniferous age Jurua and three oil-bearing reservoirs of Devonian-age (Uere). HRT tested three intervals in Devonian reservoirs; two of the intervals had gas and oil shows with low permeability. The reservoir under test was found to be 11 meters deeper and below the oil-water contact at a previous exploration well, #1-NSM-1-AM. The gas-bearing intervals identified in Jurua reservoirs had total net pay of 33 meters but were not tested and will be part of the discovery assessment plan. The combined reservoirs may be fracture stimulated to improve production. Rio de Janeiro-based HRT holds a 55% operating interest in 21 exploration blocks in the basin, including Block SOL-T-170 . TNK-BP has signed a farmout agreement with Petra Energia to acquire the remaining 45%.

4 Brazil

Another discovery in the Espirito Santos Basin was announced by Rio de Janeiro-based Petrobras. According to the company, seven exploration wells have been drilled in Block BM-ES-23 east of the Golfinho Field and six have tapped pay—the resource appears to be two or three times the size of Golfinho Field. Three wells, #1-ESS-199 (Pe de Moleque), #1-ESS-200D (Quindim) and #1-ESS-205D (Brigadeiro) and four recent exploration wells were drilled in water depths between 2,000 and 4,000 meters, where initial estimates have assigned light oil reserves of approximately 900 million bbl. Petrobras reported that these discoveries were made in Upper Cretaceous and Lower Tertiary formations and are on-trend with the Golfinho Field. Up to 20 exploration wells could be drilled by 2015 in BM-ES23 and the greater discovery area that includes BM-ES-32, which is shared by Petrobras (60%) with Statoil (40%), and BM-ES-22 and BM-ES032. Petrobras is operator of the consortium formed to explore Block BM-ES-23 with 65% interest, in partnership with Shell Brazil Petroleo, holding 20%, and Inpex Petroleo Santos with the remaining 15%.

5 Italy

An onshore gas discovery at the #1-Tiberi exploration well in Ancona Province, Italy, was reported by Sound Oil Ltd. of London at the Montemarciano Permit. The well was drilled to 715 meters and logging established a gross hydrocarbon column of 14.9 meters in several high-quality gas-bearing reservoir sands. The well has been suspended pending future work to determine the extent and commerciality of the accumulation. Sound Oil holds a 100% working interest in the gas discovery and a 75% interest in the surrounding permit, with Eni holding the remaining 25%.

6 Egypt

An offshore Egypt gas discovery was announced by BP Egypt at the #1-Salmon exploration well in its Nile Delta concession. The #1-Salmon is the third gas discovery in the North El Burg Offshore Concession following the #1-Satis and #3-Satis Oligocene deep gas discoveries. According to BP, wireline logs and pressure readings confirmed gas in two shallow Pleistocene intervals. The well was drilled to 1,600 meters in 87 meters of water. Further appraisal work is under way to evaluate the resource. BP operates the North El Burg Offshore Concession with 50% interest, in partnership with IEOC, holding the remaining 50%. BP’s headquarters are in London.

7 Ukraine

A Kulczyk Oil well in the Ukraine produced 2.3 million cu. ft. of gas per day after fracture stimulation, the first such operation in the country. The #6-Ologovskoye produced from the previously non-commercial R30c zone. The #6-Ologovskoye was drilled to 2,530 meters and used a cross-linked gel water fracturing-stimulation method with 25 tons of ceramic proppant. According to Oil and Gas International, the target zone in the well was a 14-meter thick Middle Bashkirian silty sandstone interval at 2,270 meters. The zone had an indicated permeability of less than 1 millidarcy and was not capable of flowing gas at commercial rates before the fracturing operation. A second well in the program, #8-O, is planned. KUB-Gas owns a 100% operating interest in the Olgovskoye, Makeevskoye, and North Makeevskoye, Krutogorovskoye , and Vergunskoye licenses in the Lugansk area of Ukraine. Kulczyk Oil’s headquarters are in Calgary.

8 Kazakhstan

At the #06 AKD Doris appraisal well in Kazakhstan’s Akkulka Block, Tethys Petroleum reported a test flow rate of more than 4,300 bbl. per day of 45-degree-gravity oil. At 2,165-70 meters, the Cretaceous sand flowed 4,304 bbl. per day on a 66/64-in. choke with a flowing tubing head pressure of 186 psi. Flow was restricted for safety reasons, but data indicates that the absolute open flow potential is more than 6,000 bbl. per day. Additional testing is planned, and the well will be placed on long-term test production. Stockholm-based Tethys is operator of the Akkulka Block and the AKD06 well, with 100% interest.

9 Sri Lanka

Cairn Energy Plc of Edinburgh, Scotland, has reported a second gas discovery in the offshore Mannar Basin, Sri Lanka. The #1G/1 CLPL-Barracuda exploration well was drilled in Block 2 (SL2007-01-001). It is the second of a three-well frontier basin program for which Cairn Lanka is operator with 100% interest. The well was drilled to 4,741 meters in a water depth of 1,509 meters and encountered 24 meters of hydrocarbon-bearing sandstone in three zones between 4,067 and 4,206 meters. The reservoirs are predominantly gas-bearing, with some additional liquid hydrocarbon potential. Cairn plans continued well evaluation to determine the commercial potential of the find.

10 Indonesia

A new gas field discovery in West Papua, Indonesia, was reported by PetroChina International. The #1-North Klalin exploration well was drilled in the Kepala Burung production sharing contract (Basin PSC) Arar Block, in the Sorong area. A drill-stem test produced 5.87 million cu. ft. of gas and 137 bbl. of condensate per day when tested on a 24/64-in. choke. The Basin PSC currently produces about 7,000 bbl. of oil equivalent per day. Delineation wells will be drilled to appraise the discovery and field development and production could be accelerated due to nearby producing fields. RH Petrogas and RHP Sala - wati Basin hold an aggregate 60% interest in the Basin PSC. PetroChina is based in Beijing.