Oil & Gas UK Activity Survey 2016

ACTIVITY SURVEY 2016

Development Drilling 129 development wells were drilled in 2015, rising from 126 in 2014. This is mainly due to more activity in the west of Shetland region, which saw the number of development wells increase from two to 13. This rise more than offsets the decline in development drilling in regions such as the SNS and CNS. Taking a broader picture, development drilling has been on a downward trend since its peak of 289 wells in 1998, despite small increases over the past two years. Development drilling in 2016 will depend on programmes that have already been sanctioned as part of new field or infill drilling campaigns. It is envisaged that the number of development wells drilled will drop significantly in future years especially if E&A activity is light in 2016. There is considerable concern about the pipeline of activity.

Figure 24: Development Well Count

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Number of Wells Drilled including Sidetracks

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Source: OGA

Mobile Drilling Rig Market In January 2016, there were 22 semi-submersible and 18 jack-up drilling rigs deployed in the UK. The rig count began to fall over the second half of 2015, but not as aggressively as might have been expected due to the long-term contracts in place prior to the change in market conditions. However, the number of idle and stacked rigs rose sharply in 2015 from an average of four in 2014 to an average of 11. Already in 2016, at least three more mobile rigs have been stacked. There are concerns that more rigs may be decommissioned or leave the UKCS, leading to a shortage when activity recovers.

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