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ECONOMIC REPORT
2016
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Greenfield
An undeveloped oil or gas field (as opposed to brownfield)
Heavy oil
Crudes with an American Petroleum Institute gravity of less than 20°
HPHT
High-pressure, high-temperature (of reservoirs)
Indirect employment
Employment as a result of supply chain effects caused by oil and gas sector activity.
For these companies, extraction of oil and gas and associated services will be one part
of a wider business
Induced employment
Employment supported by the redistribution of income from the oil and gas sector
Investment Allowance
A basin-wide capital investment-based allowance against a company’s Supplementary
Charge liability
LIFO
Last-In, First-Out – loss is carried back in chronological order to generate tax
repayment at the same rate that profits in that period were taxed
LNG
Liquefied Natural Gas
mb/d
Million Barrels per Day (of oil)
million boepd
Million Barrels of Oil Equivalent per Day
MER UK
Maximising Economic Recovery from the UKCS
mt
Million Tonnes
MSR
Market Stability Reserve
NBP
National Balancing Point (NBP) is a virtual trading location for the sale and exchange
of natural gas within the UK
NNS
Northern North Sea
NTS
National Transmission System (high pressure gas transmission system in Britain
operated by National Grid – the ‘motorway’ network for gas)
OGA
Oil and Gas Authority
OPEC
Organisation of Petroleum Exporting Countries
PAR
Potential Additional Resources
Production efficiency
The total annual production divided by the maximum production potential of all fields
on the UKCS
PRT
Petroleum Revenue Tax
p/th
Pence per Therm (for gas)
Reserves
Hydrocarbons that are anticipated to be recovered from known accumulations from a
given date forward
Resources
Productive potential assuming no economic or time constraints
RFCT
Ring Fence Corporation Tax (as applied to upstream oil and gas production in the UK)
SC
Supplementary Charge (a corporate tax applied to upstream oil and gas production in
addition to RFCT)
Small pools
Fields in the size range of 0 to 50 million boe for which there is no plan nor intention
to develop a plan by operators
SNS
Southern North Sea
Stacking
Reducing a crew on a rig to either zero or just a few key individuals and storing the rig
in a harbour
UKCS
UK Continental Shelf
Unconventional resources
Resources that are produced or extracted using techniques other than the
conventional method
UOC
Unit Operating Cost
US Lower 48 States
All the states in the United States that are adjoining
W o S
West of Shetland