Activity Survey 2015

Comparison of 2014 and 2015 cessation of production forecasts suggests a six per cent rise in the total number of fields planning to cease production over the next five years. This increase is primarily due to fields ceasing production earlier than previously anticipated as higher costs and lower revenues mean they reach their economic limit sooner. As the data were collected in quarter 4 2014, the full impact of the oil price fall is yet to be felt. It is anticipated that without fresh intervention the number of fields reaching cessation of production over the remainder of the decade may rise significantly.

1

2

Figure 40: Forecast Number of Fields Ceasing Production

3

90

2014

80

4

2015

70

60

5

50

40

6

30

20

7

10

Cumulative Number of Fields Ceasing Production

0

2014

2015

2016

2017

2018

2019

8

Source: Oil & Gas UK

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