Investment needed in UK oil and gas
The UK still offers significant opportunity for offshore oil-and-gas development but companies are finding it difficult to turn new reserves into economic production, according to industry body Oil & Gas UK.
The organisation has published its annual forecast of offshore oil-and-gas exploration and development activity in the UK, based on a survey of the spending plans of more than 70 companies.
It shows that the number of offshore oil-and-gas projects currently under consideration for development has risen over the past 12 months.
The survey shows, however, that reserves being developed or in production have declined, as possible new projects fail to meet companies’ economic criteria.
According to the report, this highlights continuing concern about the UK’s ability to attract the necessary investment to maximise the recovery of its oil-and-gas resources.
Oil & Gas UK believes that up to 25 billion barrels remain to be won from the UK continental shelf.
Business plans developed over the latter half of 2009 have identified up to 11 billion barrels of oil and gas in new and existing projects, a 15 per cent increase over 2008 and requiring total capital expenditure of £60bn.
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