Oil & Gas Division Update, March 2017
Onshore oil and gas activity in North America is increasing and historically this area has led Industry upturns.
While tax revenue from the UKCS has virtually dried up the recent Oil and Gas UK 2017 Business Outlook Report highlighted that 34 new UK offshore fields have been brought on stream since 2013 with between 13 to 18 additional fields due to start up this year.
With new fields coming on line and increased productivity from existing fields UK production is forecast to continue the year on year rise observed since 2015, increasing to around 1.9 million boepd by next year.
Domestic production is of major benefit to the UK security of supply, balance of payments and employment.
Exports of UK oilfield goods and services are forecast at £12 billion for this year.
UKCS development and operating costs have halved in the last few years in response to Industry cost reduction and efficiency measures.
The recent report from the Oil and Gas Authority on a review of 58 major UKCS projects executed between 2011 and 2016 highlighted further improvement opportunities.
In the March budget the UK Government announced a review to identify further opportunities to improve the fiscal regime to help the Industry.
The Oil and Gas Technology Centre officially open in Aberdeen with £180 million of government funding over the next 10 years.
All the above are signs for optimism.
Full reports, along with much more, can be found on the Oil and Gas Division site on the IOM3 website.