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Released March 25, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Oil and gas production in the U.K rose by more than 4% in 2018, according to new figures from the state-run Oil and Gas Authority (OGA).
In its Projections of U.K. Oil and Gas Production and Expenditure 2018 Report it stated that production averaged 1.7 million barrels of oil equivalent (boe) per day. Oil production alone rose to 1.09 million barrels per day--up 8.9% on the previous year and the highest U.K. oil production rate since 2011. At the same time, gas production in 2018 fell by 3.5% to 0.61 million boe per day, as operating costs (OPEX) rose slightly and capital expenditure again fell significantly in the basin.
The oil production increase can be attributed to more than 30 new fields coming on-stream since 2015, as well as improved production efficiency and asset integrity, the realisation of enhanced oil recovery (EOR) projects and the U.K.'s offshore licensing rounds' continued focus on associated exploration, appraisal and development commitments.
Capital expenditure fell for the fourth straight year, but the OGA expects "this downwards trend of U.K. oil and gas upstream investment" to be halted this year, with a 4% increase projected.
Annual decommissioning expenditure has risen year on year since 2015, with 2017 to 2018 seeing a 9% increase to £1.45 billion ($2.45 billion), reflecting a higher level of decommissioning activity taking place. The five-year outlook (2019--2023) projection for decommissioning expenditure is down 18% from the previous assessment last year.
Head of performance, planning and reporting at the OGA, Loraine Pace, said: "The 3.9 billion barrels identified is great news, with 2018 being a productive year. New discoveries such as Glendronach and Glengorm highlight the future potential of the basin, which could be boosted further with new investment, exploration successes and resource progression. The OGA continually supports industry in efforts to revitalise exploration, through Area Plans and promoting new technologies."
Earlier this year, the U.K. inaugurated the National Decommissioning Centre (NDC) to help reduce the cost of decommissioning or reusing up to 100 U.K. offshore oil and gas platforms and 5,700 kilometres (km) of pipelines over the next decade. The OGA estimates the total cost of oil and gas decommissioning to be £58 billion ($75 billion). For additional information, see August 21, 2018, article - U.K. Oil & Gas Decommissioning Body Targets $75 Billion Opportunity.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
In its Projections of U.K. Oil and Gas Production and Expenditure 2018 Report it stated that production averaged 1.7 million barrels of oil equivalent (boe) per day. Oil production alone rose to 1.09 million barrels per day--up 8.9% on the previous year and the highest U.K. oil production rate since 2011. At the same time, gas production in 2018 fell by 3.5% to 0.61 million boe per day, as operating costs (OPEX) rose slightly and capital expenditure again fell significantly in the basin.
The oil production increase can be attributed to more than 30 new fields coming on-stream since 2015, as well as improved production efficiency and asset integrity, the realisation of enhanced oil recovery (EOR) projects and the U.K.'s offshore licensing rounds' continued focus on associated exploration, appraisal and development commitments.
Capital expenditure fell for the fourth straight year, but the OGA expects "this downwards trend of U.K. oil and gas upstream investment" to be halted this year, with a 4% increase projected.
Annual decommissioning expenditure has risen year on year since 2015, with 2017 to 2018 seeing a 9% increase to £1.45 billion ($2.45 billion), reflecting a higher level of decommissioning activity taking place. The five-year outlook (2019--2023) projection for decommissioning expenditure is down 18% from the previous assessment last year.
Head of performance, planning and reporting at the OGA, Loraine Pace, said: "The 3.9 billion barrels identified is great news, with 2018 being a productive year. New discoveries such as Glendronach and Glengorm highlight the future potential of the basin, which could be boosted further with new investment, exploration successes and resource progression. The OGA continually supports industry in efforts to revitalise exploration, through Area Plans and promoting new technologies."
Earlier this year, the U.K. inaugurated the National Decommissioning Centre (NDC) to help reduce the cost of decommissioning or reusing up to 100 U.K. offshore oil and gas platforms and 5,700 kilometres (km) of pipelines over the next decade. The OGA estimates the total cost of oil and gas decommissioning to be £58 billion ($75 billion). For additional information, see August 21, 2018, article - U.K. Oil & Gas Decommissioning Body Targets $75 Billion Opportunity.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
