Economic Report 2017

Although the aǀerage UO aƉƉears relatiǀely high in the UK at Ψ1ϱ͘ϯ0ͬďoe, this includes the cost oĨ oƉerating an e x t e nsiv e ne t w or k of m idst r e am infr ast r uct ur e and onsh or e t e r m inals t h at ge ne r at e a m uch h igh e r com p one nt oĨ oƉerating edžƉenditure than in other less comƉledž ďasins͘ then looŬing solely at Ɖroducing Ĩields, the ǁeightedͲaǀerage UO oĨ the UK ^ ǁas Ψ1ϯ͘20ͬďoe in 201ϲ͘ The median aǀerage Ĩield UO is eǀen loǁer, at ũust oǀer Ψ10ͬďoe, indicating that a small numďer oĨ assets ǁith a ǀery high UO sŬeǁ the mean͘ Indeed, oǀer tǁoͲthirds oĨ UK ^ assets, accountaďle Ĩor almost threeͲƋuarters oĨ Ɖroduction, ǁere oƉerating at under Ψ1ϱͬďoe in 201ϲ͘

1

2

Figure 23: UKCS Field Level Unit Operating Costs, Mean versus Median, 2016

3

100%

9 0%

4

8 0%

UKCS Mean Weighted- Av erage UOC ( producing assets only )

7 0%

UKCS Median Av erage UOC ( producing assets only )

5 6 7 8

6 0%

Cumulativ e Proportion of Total UKCS Production

5 0%

4 0%

3 0%

Proportion of UKCS Production

2 0%

10%

0%

0 5 10 15

2 0 2 5

3 0 3 5

4 0 4 5

5 0 5 5

6 0 6 5

7 0 7 5

8 0 8 5

9 0 9 5 100

Unit Operating Cost ( $ / boe)

Source: Oil & Gas UK

9

10

11

4 7