Oil & Gas UK Activity Survey 2016

ACTIVITY SURVEY 2016

6.3 Summary of Key Statistics

2013

2014

2015

2016 Forecast 1.68 mln boepd ~ 0.97 mln boepd ~ 0.71 mln boepd ~ 38 bcm

Total Production

1.50 mln boepd 0.86 mln boepd 0.63 mln boepd 34.5 bcm

1.49 mln boepd 0.85 mln boepd 0.64 mln boepd 35 bcm

1.64 mln boepd 0.95 mln boepd 0.69 mln boepd 37.2 bcm £21.7 billion £11.6 billion £8.2 billion £0.8 billion £1.1 billion 38.25 $/boe 17.30 $/boe 20.95 $/boe 25.00 £/boe 11.30 £/boe 13.70 £/boe $52.50/bbl 42.6 p/therm

Oil/Liquids

Gas

Total Expenditure Capital Expenditure Operating Expenditure Exploration and Appraisal

£25.8 billion £14.4 billion £8.9 billion £1.6 billion £0.9 billion 51.50 $/boe 26.10 $/boe 25.40 $/boe 33.70 £/boe 17.40 £/boe 16.30 £/boe

£26.5 billion £14.8 billion £9.7 billion £1.1 billion 49.70 $/boe 20.40 $/boe 29.30 $/boe 31.40 £/boe 13.60 £/boe 17.80 £/boe £1 billion

~ £19 billion

~ £8.6-9.2 billion ~ £7.0-7.6 billion

~ £0.7 billion ~ £1.5 billion

Decommissioning Unit Technical Cost

~ ~

Unit Development Cost 1

Unit Operating Cost Unit Technical Cost

~ 17.00 $/boe

~ ~

Unit Development Cost 1

Unit Operating Cost

~ 11.00 £/boe

Oil Price (avge)

$109/bbl

$99/bbl

~ ~ ~

Gas Price (avge – day-ahead) Combined Oil and Gas Price Direct N. Sea Tax Revenues (Fiscal Year)

68 p/therm

51 p/them

$90/boe

$78/boe

$46/boe

~ £0.1 billion 2

£4.7 billion

£2.2 billion 2

~ £0.1 billion 2

incl. sidetracks

excl. sidetracks

incl. sidetracks

excl. sidetracks

incl. sidetracks

excl. sidetracks

incl. sidetracks

excl. sidetracks

Wells Drilled

Exploration

15

15

14

13

13

13

~

~ 7-10

Appraisal

29

18

18

14

13

3

~

~ 6-9

Development

120

69

126

76

129

78

~

~

Total

164

102

158

103

155

94

New Field Approvals Incremental Projects New Field Start-ups (Excludes Incrementals) Exploration Volumes Discovered

10 26

8

5

~ ~

28

10

13 (392 million boe)

5 (195 million boe)

8 (100 million boe)

~

80 million boe

50 million boe

~

~ 150 million boe

1 This reflects the Unit Development Costs of new fields approved within each year 2 Based on HM Treasury’s Autumn Statement 2015 Forecast NB - All expenditures and costs are quoted in money of the day

List of new field development plan approvals by year 2013 2014

2015

Balloch Cladhan Enochdhu Kraken Kraken North Mariner Morrone Orca Orlando Tonto

Alder Aviat Burgman

Scolty Crathes Edradour Glenlivet Culzean

Catcher Cawdor Flyndre (UK) Varadero Ythan

page 58