Oil & Gas UK Decommissioning Insight 2014

DECOMMISSIONING INSIGHT 2014

4.1 Historical Comparison of Forecast Expenditure

A comparison of forecast expenditure has been carried out using data from previous Decommissioning Insight reports (2011 to 2014) 14 . See Figure 1 below.

The pattern of forecast expenditure in this report is in line with last year; however, the average yearly forecast expenditure has increased to £1.5 billion, compared with £1 billion in the 2013 report, representing a clear market opportunity for the supply chain. For 2014 specifically, operators forecast that expenditure will reach £1 billion for the first time. In 2013, £470 million was spent on decommissioning, representing 81 per cent of the £580 million forecasted. The difference between these figures is due to the timescales of some well P&As being extended. The associated expenditure has spread into 2014. Figure 1: Comparison of the Annual Forecast Decommissioning Expenditure on the UK Continental Shelf (2011 to 2014 surveys)

2,000

Increased Uncertainty in Forecasts

1,500

1,000

500 Forecast Expenditure (£ Million)

0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2011 2012 2013 2014

Source: Oil & Gas UK

14 All expenditure in 2014 money at 01.08.2014.

12