OGUK Business Outlook 2021
BUSINESS OUTLOOK 2021
Drilling and Wells Activity (continued)
Figure 10: UKCS Drilling and Wells Activity
OGUK expects to see a modest increase in activity in 2021, with a further potential pick up in 2022. This would include expectations of 70–80 development wells, 10–12 exploration wells and 3-5 appraisal wells this year —similar to levels seen in 2016–18. These wells include a wide range of exploration prospects, ranging from relatively small infrastructure-led prospects to some potentially high-impact opportunities. Continued high-quality exploration activity is crucial, particularly in providing new resource progression opportunities to support security of supply and providing new throughput to sustain the viability of infrastructure that may be required as part of future net-zero developments. As outlined in OGUK’s Decommissioning Insight 2020 , around one-third of well decommissioning plans were deferred last year. Whilst a recovery will take time, OGUK also expects to see an increase in these activities this year. This is likely to be followed by a further increase in 2022 as companies return to deferred plans. It is possible, however, that companies may look to advance some existing plans which may have been deferred to 2022–23, given the prospect of increased cash generation from improved commodity prices and capacity in the supply chain to complete the work scopes.
Number of Wells Drilled & Decommissioned
2016 Source:OGA,OGUK 2018 2020
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