Oil & Gas UK Activity Survey 2016

Figure 34: Capital Investment by Field in Year of Approval

1

14

12

2

10

3

8

6

4

4

Total Capital Investment by Field (£ Billion - 2015 Money)

2

5

0

2010

2011

2012

2013

2014

2015

2016

Year of Field Approval

Source: OGA, Oil & Gas UK

6

Operating Expenditure Industry made substantial progress in reducing UKCS operating costs in 2015, with total operating expenditure falling by around 15 per cent to £8.2 billion. It should be noted that this only covers the aggregate cost of operating assets on the UKCS. Cost reductions achieved on existing assets are partially offset by the operating costs of new field start-ups. On a like-for-like basis, operating costs on existing assets actually fell from £9.7 billion in 2014 to £8 billion in 2015. A further reduction of more than £1 billion is expected over the course of 2016.

Figure 35: Changes in Operating Costs (New versus Existing Fields)

10.0

9.7

Reduction from Existing Fields Contribution from New Fields

9.5

9.0

8.5

8.2

8.2

8.0

8.0

7.6

7.5

Total Operating Costs (£ Billion)

7.0

7.1

6. 0

2014/15

2015/16

Source: Oil & Gas UK

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