In Oil & Companies News 26/02/2016
UK crude oil production surged by almost 14% in 2015 to 42.640 million mt, or 882,000 b/d, the first significant annual increase since 1999, due to new fields feeding the Flotta and Forties terminals and less maintenance, provisional government data showed.
Total liquids production, including natural gas liquids (NGLs), increased by almost 13% to 45.037 million mt, or 958,000 b/d, the statistics from the Department of Energy and Climate Change showed.
In the fourth quarter, crude production increased 16% on the year to 11.292 million mt, or 927,000 b/d.
UK oil production has fallen by around 6% annually since 2005, DECC noted.
Lobby group Oil and Gas UK forecast this week that overall oil and gas output would rise by another 2.3% this year, to 1.68 million b/d of oil equivalent, and reach 1.74 million boe/d by 2018, although it also warned of a possible steep decline subsequently.
It echoed claims by oil companies that efficiency rates have improved in the North Sea, adding that the industry had maintained stable levels of development drilling last year, despite fears that such activity would dwindle.
The decline rate from existing assets fell to just 4% in 2015 from 12% the previous year, Oil and Gas UK said in an annual activity survey.
The UK production recovery also reflects a surge in investment during the half-decade that preceded the current oil price crash. Oil and Gas UK estimates that in 2018, 40% of oil and gas production will be from fields started up or redeveloped since 2013.
EXPORT INCREASE
DECC also said UK exports of crude and NGLs had increased by 6.2% in 2015 to 31.739 million mt, while imports had fallen by 7.1% to 45.403 million mt.
Oil product imports rose by 9.5% to 31.825 million mt, while product export levels were unchanged at 22.756 million mt. The UK has been a net importer of products since 2013. Note: DECC units converted from mt into barrels at a rate of 1 mt:7.55 barrels crude oil; 11.5 barrels NGLs
