Oil & Gas UK Activity Survey 2016

ACTIVITY SURVEY 2016

Figure 40: Revenues, Costs and Cash Flow on the UK Continental Shelf

70

Gross Revenue Post-Tax Costs Post-Tax Cash Flow

60

50

40

30

20

10

Cash Flow (£ Billion - 2015 Money)

0

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

-10

Source: Oil & Gas UK, OGA

-20

Figure 41 shows this picture on a company by company working interest basis. Only five companies generated free cash flow in excess of $200 million in 2015. Lower prices mean that this number is likely to fall in 2016. This strongly illustrates the scarcity of internally generated funds for much needed reinvestment into the UKCS.

Figure 41: Free Cash Flow Generation by Company in 2015

600

400

200

0

-200

-400

-600

-800

Company Cash Flow ($ Million - 2015 Money)

-1,000

-1,200

Source: Wood Mackenzie

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