LONDON – Oil & Gas UK’s 2013 Economic Report forecasts record investment on the UK continental shelf (UKCS) this year of £13.5 billion ($21.2 billion).
CEO Malcolm Webb said: “The recent sharpening of focus within government and industry [in Britain] on the business environment…has given investors the confidence to develop new fields and redevelop older fields…”
The knock-on effect is that the UK supply chain now generates sales of £27 billion/yr ($42.4 billion/yr) , the report claims, including £7 billion ($10.9 billion) in exports. Well services companies are generating record revenues of almost £2 billion/yr ($3.14 billion/yr).
Webb said there are still 15-24 Bboe of reserves waiting to be developed throughout the UKCS. However, Britain’s annual production declined last year by 14.5% to 567 MMboe, or 1.54 MMboe/d.
Nine fields came onstream in 2012 with combined reserves of 146 MMboe. Oil & Gas UK expects start-ups on 15 fields this year with combined reserves of 470 MMboe.
In addition, the shut-in Banff, Gryphon, and Elgin fields will be back online, but production over the year still looks set to dip to 1.2-1.4 MMboe/d.
Webb explained: “The production efficiency of existing assets remains in worrying decline. DECC [the Department of Energy and Climate Change] and the industry are working to tackle this serious concern through a joint task group. The Wood Review, which is currently examining how to maximize UKCS recovery, is also very timely and we very much look forward to seeing the recommendations early in 2014.”