Oil & Gas UK Activity Survey 2016

ACTIVITY SURVEY 2016

Figures 21 and 22 show that, in comparison to the last three years, exploration was significantly more successful in 2015. In addition to discovering larger volumes than in each of the last three years, the success per exploration well was also greater, with each well discovering on average 12 million boe compared with an average over the decade of just seven million boe. Looking forward to 2016, while drilling activity may reduce further, at least two wildcat wells 13 targeting more than 100 million boe are expected to be drilled, signalling the shift towards higher risk but potentially higher value opportunities.

Figure 21: Recoverable Reserves Discovered

500

450

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250

200

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Total Recoverable Volumes Discovered (Million boe)

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Oil & Gas UK, OGA, Wood Mackenzie

Figure 22: Volumes Discovered per Exploration Well

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12

10

8

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2

Volumes Discovered per Exploration Well (Million boe)

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Oil & Gas UK, OGA, Wood Mackenzie

13 Wildcat wells – drilling for oil or gas in an unproven area that has no historic production and has not been explored in the past.

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