Oil & Gas UK Economic Report 2015

NGL

natural gas liquid (for example butane, propane) National Insurance Contributions

GVA

gross value added

HH

Henry Hub (the principal trading point for gas in the USA) Her Majesty’s Revenue and Customs (sometimes known as ‘the Exchequer’) Her Majesty’s Treasury (of which HMRC is part) high pressure, high temperature (of reservoirs) International Energy Agency (part of the OECD) employment as a result of supply chain effects caused by oil and gas sector activity. For these companies, extraction of oil and gas and associated services will be one part of a wider business employment supported by the redistribution of income from the oil and gas sector International Association of Oil & Gas Producers mergers and acquisitions million barrels per day (of oil) million barrels of oil equivalent per day million cubic metres per day (of gas) description of a specific sidetrack that is made to bypass an obstruction while the surface and target locations remain the same maximising economic recovery from the UKCS (ref. the Wood Review) Map of Northern Sea High million tonnes of oil equivalent liquefied natural gas lost time incident light, tight oil

NIC

NPV NNS NTS

Net Present Value northern North Sea

HMRC

National Transmission System (high pressure gas transmission system in Britain operated by National Grid – the ‘motorway’ network for gas) Organisation of Economic Co-operation and Development (based in Paris)

HMT

HPHT

OECD

IEA

Indirect

employment

OGA ONS OPEC

Oil and Gas Authority

Office for National Statistics Organisation of Petroleum Exporting Countries

Induced

opex P&A

operating expenditure

employment

plugging and abandonment potential additional resources

PAR

IOGP

PAYE

Pay As You Earn

LNG

PE

production efficiency, a measure of a field’s performance by comparing actual production as a percentage of the maximum production potential, after allowing for the natural decline of a reservoir, the reliability of infrastructure, the effects of shutdowns and major maintenance, and the like

LTI

LTO

M&A mb/d

mboepd

mcm/d

P/I

Profitability Index

mechanical

PRT PUQ p/th RFCT

Petroleum Revenue Tax

sidetrack

production, utilities and quarters

pence per therm (for gas)

MER UK

Ring Fence Corporation Tax (as applied to upstream oil and gas production in UK) Supplementary Charge (a corporate tax applied to upstream oil and gas production in addition to RFCT) description of a well that is started from the bore of an existing well, but is then deviated to create a new well small to medium (sized) enterprise

MNSH

SC

mtoe mt/y MSR

million tonnes per year Market Stability Reserve

sidetrack

NBP

National Balancing Point (fictional location in Britain where the NTS is notionally in balance and at which the trading of gas takes place)

SME

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ECONOMIC REPORT 2015