Oil & Gas UK Economic Report 2014

More uncertain are the PARs in existing fields and yet-to-find (YTF) resources; these are much harder to evaluate. Oil & Gas UK believes that the UKCS has PARs of up to 3.5 billion boe, of which there is slightly more oil than gas, and YTF resources of 3-9 billion boe, again with slightly more oil than gas. Oil & Gas UK forecasts that over £1,000 billion of expenditure (in 2013 money) – encompassing exploration and appraisal (E&A) drilling, capital investment, operating and decommissioning costs – will be required

if the upper end of our remaining resources, that is above 20 billion boe (see Figure 7), are to be recovered in the fullness of time. It is essential that government and industry work together to create the right fiscal and regulatory environment for the necessary investment to be made in the UKCS, hence the significance of the tripartite strategy, MER UK. It should be noted that this report does not consider potential onshore shale gas or oil resources. The relevant organisation for this subject is the UK Onshore Operators’ Group 5 .

1

2

3

4

Figure 7: Forecast of UK Continental Shelf Reserves and Resources (as at the end of 2013)

5

30

25

6

Yet-to-Find 3-9 bln boe

20

7

Potential Additional Resources 1-3.5 bln boe New Field Reserves 1-3 bln boe Brownfield Reserves 1-2.5 bln boe Existing Fields and Sanctioned Investments 6.6 bln boe

15

8

10

5

Reserves/Resources (Billion boe)

0

Produced in 2013

Source: DECC, Oil & Gas UK

-5

5 More information about onshore shale gas and oil is available at www.ukoog.org.uk

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ECONOMIC REPORT 2014