Oil & Gas UK Economic Report 2015

Production • Provisional data from DECC for the first six months of 2015 show an increase in production by around three per cent against the same period last year. • In 2014, UKCS production averaged 1.49 million boe per day (in total 545 million boe), just 0.2 per cent less than 2013. This was the best year-on-year production performance since 2000, with many assets reporting improved production efficiency and new fields coming on-stream. • The UK remains in the top 25 global producers of both oil (23rd) and gas (23rd). Decommissioning • Decommissioning expenditure is likely to rise from £1 billion in 2014 to over £2 billion in 2018, by which time over 50 fields will either be approaching or undertaking decommissioning. • Some 475 installations, 10,000 kilometres of pipelines, 15 onshore terminals and 5,000 wells will eventually have to be decommissioned.

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Editorial Note: The drafting of this report was undertaken during the period June to August 2015.

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ECONOMIC REPORT 2015