This market report analyses the UK offshore oil and gas industry, which covers activities in the waters surrounding the UK, known as the UK Continental Shelf (UKCS).
April 13, 2007 (Press Release) --
Offshore Oil & Gas Industry : Market Report 2006
This market report analyses the UK offshore oil and gas industry, which covers activities in the waters surrounding the UK, known as the UK Continental Shelf (UKCS). In 2005, total sales of oil, gas and related products amounted to £28.69bn, an increase of 22.8% on 2004. Government revenues and taxes attributable to UK oil and gas production reached an estimated £9.7bn in 2005/2006, up by 84.7% on the previous year.
Oil and gas production is falling. At 182.1 million tonnes of oil equivalent (mtoe), output in 2005 was 9.9% lower than 2004's output and 22.4% lower than it was in 2001. Oil and gas account for roughly equal shares of UKCS output.
41 years after the first recoverable reserves were discovered in the UKCS, the UK oil and gas industry is a mature one. While there are likely to be some short-term, small increases in output, as a few remaining large fields come on stream and the lives of older fields are extended, the long-term future will be one of decline, unless new major discoveries are made. The more recent discoveries have been smaller than earlier discoveries and they are also more difficult and expensive to bring into production. Some of the larger international oil and gas companies are selling their less attractive UKCS assets and switching their attention to other parts of the world, which give better returns on investment.
In the context of the recent government Energy Review, the UK offshore oil and gas industry has an important role to play in providing energy for the UK. Longer term, UK energy needs will have to be met by an increasing amount of oil and gas imports, much of which will come from countries where the culture and politics are very different from those in the UK.
Offshore Oil & Gas Industry : Market Report 2006
This market report analyses the UK offshore oil and gas industry, which covers activities in the waters surrounding the UK, known as the UK Continental Shelf (UKCS). In 2005, total sales of oil, gas and related products amounted to £28.69bn, an increase of 22.8% on 2004. Government revenues and taxes attributable to UK oil and gas production reached an estimated £9.7bn in 2005/2006, up by 84.7% on the previous year.
Oil and gas production is falling. At 182.1 million tonnes of oil equivalent (mtoe), output in 2005 was 9.9% lower than 2004's output and 22.4% lower than it was in 2001. Oil and gas account for roughly equal shares of UKCS output.
41 years after the first recoverable reserves were discovered in the UKCS, the UK oil and gas industry is a mature one. While there are likely to be some short-term, small increases in output, as a few remaining large fields come on stream and the lives of older fields are extended, the long-term future will be one of decline, unless new major discoveries are made. The more recent discoveries have been smaller than earlier discoveries and they are also more difficult and expensive to bring into production. Some of the larger international oil and gas companies are selling their less attractive UKCS assets and switching their attention to other parts of the world, which give better returns on investment.
In the context of the recent government Energy Review, the UK offshore oil and gas industry has an important role to play in providing energy for the UK. Longer term, UK energy needs will have to be met by an increasing amount of oil and gas imports, much of which will come from countries where the culture and politics are very different from those in the UK.
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