Oil & Gas UK Economic Report 2014

Figure 25: Average Size of Discoveries (Three-Year Rolling Average) on the UK Continental Shelf

300

1

250

200

2

150

3

100

'Buzzard Effect'

50

4

0

Three-Year Rolling Average Discovery Size (Million boe)

1970 1975 1980 1985 1990 1995 2000 2005 2010

5

Source: Wood Mackenzie

6

Figure 26: Average Unit Development Cost of Projects being Considered for Investment

14

7

12

8

10

8

6

4

2

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Average Unit Development Cost (£/boe) - 2013 Money Source: Oil & Gas UK

47

ECONOMIC REPORT 2014