Wednesday, 24 October 2018

North Sea oil and gas spend 'could still be £330bn', according to leading industry experts

Up to £330bn could be spent on extracting oil and gas from UK waters over the next three decades, according to leading industry experts.
Prof Alex Kemp and Dr Linda Stephen at Aberdeen University have used new data to model the potential for the offshore industry until 2050.

The study concludes that there could be 17 billion barrels of oil or the equivalent gas still to be extracted from offshore fields.

This is in addition to more than 43 billion barrels produced since the 1970s.

Prof Kemp and Dr Stephen have applied new data to their economic modelling of the sector, to test whether it can meet ambitious targets set by the industry, government and the new regulator, the Oil and Gas Authority.
This finds that the targets are achievable, but only under favourable conditions for the industry - on price, cost, funding and technical progress over the decades. Exploration would have to continue at recent levels of both drilling and success if this is to be achieved.

Such an outcome would mark a turnaround from the decline seen in production and in spending since the oil price slumped in 2014, though there would still be a long-term decline in spending and output.

With oil recently trading close to $80 per barrel, stability and some new optimism have returned to the industry.

BBC     News.

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