Oil & Gas UK’s 2016 Activity Survey, reveals that while the industry’s drive to improve efficiency, reduce operating costs and increase production has had marked success, exploration remains at an all-time low with no sign of improving.
Most concerning is the collapse of investment in new projects. This year the upstream industry is expected to approve less than £1 billion to spend on new projects, compared to a typical £8 billion per year in the last five years – sparking fears for the long term future of the industry.
The trade body is calling on the Government for urgent reforms of the special taxes paid by the industry to attract investment back into the basin and minimise loss of capacity during the downturn.
A summary of the report and OGUK's response can be found on the OGUK website by clicking here.
The Oil & Gas UK 2016 Activity Survey is available here.