Economic Report 2016 - Oil & Gas UK

ECONOMIC REPORT 2016

Greenfield Heavy oil

An undeveloped oil or gas field (as opposed to brownfield) Crudes with an American Petroleum Institute gravity of less than 20°

HPHT

High-pressure, high-temperature (of reservoirs)

Employment as a result of supply chain effects caused by oil and gas sector activity. For these companies, extraction of oil and gas and associated services will be one part of a wider business Employment supported by the redistribution of income from the oil and gas sector A basin-wide capital investment-based allowance against a company’s Supplementary Charge liability Last-In, First-Out – loss is carried back in chronological order to generate tax repayment at the same rate that profits in that period were taxed

Indirect employment

Induced employment

Investment Allowance

LIFO

LNG

Liquefied Natural Gas

mb/d

Million Barrels per Day (of oil)

million boepd

Million Barrels of Oil Equivalent per Day Maximising Economic Recovery from the UKCS

MER UK

mt

Million Tonnes

MSR

Market Stability Reserve

National Balancing Point (NBP) is a virtual trading location for the sale and exchange of natural gas within the UK

NBP

NNS

Northern North Sea

National Transmission System (high pressure gas transmission system in Britain operated by National Grid – the ‘motorway’ network for gas)

NTS

OGA OPEC

Oil and Gas Authority

Organisation of Petroleum Exporting Countries

PAR

Potential Additional Resources

The total annual production divided by the maximum production potential of all fields on the UKCS

Production efficiency

PRT p/th

Petroleum Revenue Tax Pence per Therm (for gas)

Hydrocarbons that are anticipated to be recovered from known accumulations from a given date forward

Reserves

Resources

Productive potential assuming no economic or time constraints

RFCT

Ring Fence Corporation Tax (as applied to upstream oil and gas production in the UK) Supplementary Charge (a corporate tax applied to upstream oil and gas production in addition to RFCT) Fields in the size range of 0 to 50 million boe for which there is no plan nor intention to develop a plan by operators

SC

Small pools

SNS

Southern North Sea

Reducing a crew on a rig to either zero or just a few key individuals and storing the rig in a harbour

Stacking

UKCS

UK Continental Shelf

Resources that are produced or extracted using techniques other than the conventional method

Unconventional resources

UOC

Unit Operating Cost

US Lower 48 States

All the states in the United States that are adjoining

W o S

West of Shetland

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