Activity Survey 2015

ACTIVITY SURVEY 2015

6.2 Drilling Activity

Exploration Drilling Over recent years exploration activity on the UKCS has collapsed. This trend continued in 2014 with just 14 exploration wells 4 drilled, reflecting the lowest rate of exploration drilling since 1965. Given uncertainty of capital and affordable rig availability, the indications are that the situation is unlikely to improve in 2015 with only eight to 13 exploration wells anticipated. This trend is of fundamental concern to all stakeholders and raises questions about the UKCS’ sustainability. It will require concerted effort by all parties to both understand the drivers that have depressed exploration activity and assess the factors that can most effectively lead to an improvement in the outlook.

Figure 11: Exploration Well Count and Forecast

50

45

Exploration Sidetracks Exploration Wells

40

35

30

25

20

15

10

8-13 Wells

5

Number of Wells Drilled including Sidetracks

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Oil & Gas UK, DECC

4 Throughout the report well numbers include geological sidetracks unless stated otherwise. Drilling numbers are counted by spud date unless stated otherwise.

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