Oil & Gas UK: Production up for the first time in 15 years?
A month ahead of the publication of Oil & Gas UK’s Economic Report 2015, Deirdre Michie, chief executive, Oil & Gas UK, comments on a basin in the midst of reform:
“Recent provisional figures from the Department for Energy (DECC) suggest that oil and gas production from the UK Continental Shelf (UKCS) over the first six months of this year could be 2.5 per cent higher than the same period last year. It’s still early days, but initial indications suggest that production could increase this year for the first time in fifteen years.
“Provisional data for the first six months of 2015 show liquids production to be up around three per cent and net gas production to be up around 2.5 per cent this year, compared to the first six months of last year. Production in the second quarter of the year looks particularly encouraging and early figures suggest that May saw the most oil and gas produced on the UKCS since March 2012.
“We will be able to discuss annual estimates with more certainty by the end of the summer maintenance season, as figures for July and August are historically the most uncertain.”
Golden Eagle boost
Oil & Gas UK believes the improved performance is partly due to production from the large Golden Eagle field which only started producing in November 2014, as well as, importantly, stronger delivery from existing assets.
Deirdre Michie added: “Clearly the oil price – which has more than halved since this time last year – continues to really challenge the industry. However, this positive news can indeed be attributed to the effort and investment industry has put into improving the integrity and performance of UKCS assets – something we’ll look to explore in further detail in our Economic Report 2015.
“At our Annual Conference earlier this summer, I opened the discussion around how the oil and gas industry must become sustainable in a world with a considerably lower oil price. As demand for our products remains strong, critical for our transport and heating our homes and giving us a whole host of everyday products, it is imperative we continue on this journey if we are to continue to ensure the UK remains a commercially attractive and predictable place in which to invest.”
Source: Oil & Gas UK