Economic Report 2017

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of the UK’s energy mix will still come from oil and gas by 2035

higher over the first half of this year than the same period last year 300,000 jobs in the UK

sets out aspirations for the industry over the first half of 2017 than the same period last year

6. UK Continental Shelf

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sets out aspirations for the industry over the first half of 2017 than the same period last year The average Brent oil price was 30% higher over the first half of this year than the same period last year In Sum m ar y P e r for m ance im p r ov e m e nt s h av e b e e n ach ie v e d acr oss a r ange oĨ industry Ŭey ƉerĨormance indicators ;KWIsͿ oǀer the last 12 months͘ Wroduction is still rising, driǀen ďy continued Ɖrogress in imƉroǀing Ɖroduction eĸciency and ďeƩer Ɖroũect edžecution so that startͲuƉs are increasingly coming onͲstream on time and ǁithin ďudget͘ Unit oƉerating costs ;UO sͿ are edžƉected to ďe around Ψ1ϰͬďoe this year, maŬing ďroǁnĮeld inǀestments more aƉƉealing and helƉing to edžtend economic Įeld liĨe͘ The average NBP day-ahead gas price was 40% higher Performance and Opportunity By the end of 2018 over The industry could deliver hundreds of billions of pounds in additional revenue to the UK by 2035 hallenges remain, hoǁeǀer, and the industry is in urgent need oĨ Ĩresh caƉital inǀestment, much oĨ ǁhich may come Ĩrom neǁ entrants to the ďasin͘ This is true across all areas oĨ the ďusiness, Ĩrom edžƉloration and aƉƉraisal through to deǀeloƉment oĨ neǁ Ɖroũects and lat e - life m anage m e nt of olde r asse t s. A raŌ oĨ D&A actiǀity seen oǀer the Įrst halĨ oĨ 2017, ǁorth almost Ψϲ ďillion in UK ^ asset and corƉorate Ɖurchases, is a strong ǀote oĨ conĮdence in a ďasin that has shoǁn imƉressiǀe resilience through t h e m ar ke t dow nt ur n. It helƉs that the UK ^ is a more aƩractiǀe Ɖlace to inǀest Ĩor the long term than it had ďeen Ɖreǀiously, ǁith UO imƉroǀements gr e at e r t h an any ot h e r b asin in t h e w or ld. F iscal ch ange h as also ďeen Ɖositiǀe ǁith the highest tadž rate Ĩalling Ĩrom ϴ1 Ɖer cent to ϰ0 Ɖer cent oǀer the last three udgets͘ The UK noǁ has a Įscal regime that ranŬs among the toƉ Ƌuartile in terms oĨ ƉreͲtadž ǀalue r e t ur ning t o inv e st or s. T h is b ackdr op p r e se nt s t h e UK w it h an immense oƉƉortunity to Ňourish oǀer the nedžt Ĩeǁ years, madžimising its contriďution to the UK economy͘ of total production will come from start-ups post-2016 1 / 3 sets out aspirations for the industry By the end of 2018 over hnit operating cost improvements have been greater in the UK than any other basin since 2014

By the end of 2018 over The industry could deliver hundreds of billions of pounds in additional revenue to the UK by 2035 The cost of industry trade could increase by as much as per annum if the UK reverts to World Trade Krganinjation rules £500 million of total production will come from start-ups post-2016 1 / 3 hnit operating cost improvements have been greater in the UK than any other basin since 2014 Vision 2035 will require an integrated policy approach between industry and government

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oilandg

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High profile

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M A &

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deals total nearly $6 billion combined over the first half of the year

of total production will come from start-ups post-2016

oilandgasuk /economicreport

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