43 / 72
1
2
3
4
5
6
7
8
9
10
11
3
9
oilandg
sets out aspirations
for the industry
By the end of 2018
over
of total production
will come from start-ups
post-2016
1
/
3
oilandgasuk
/economicrepo
sets out aspirations
for the industry
higher over the first half
of this year than the
same period last year
By the end of 2018
over
of total production
will come from start-ups
post-2016
hnit operating cost
improvements have
been greater in the UK
than any other basin
since 2014
over the first half of
2017 than the same
period last year
The industry could
deliver hundreds
of billions of pounds
in additional revenue
to the UK by 2035
1
/
3
her
oilandgasuk
/economicreport
Vision 2035 will
require an integrated
policy approach
between industry and
government
sets out aspirations
for the industry
The cost of industry
trade could increase
by as much as
per annum if the UK
reverts to World Trade
Krganinjation rules
£500
million
The average
Brent oil price was
30%
higher over the first half
of this year than the
same period last year
of the UK’s energy mix
will still come from oil
and gas by 2035
By the end of 2018
over
of total production
will come from start-ups
post-2016
hnit operating cost
improvements have
been greater in the UK
than any other basin
since 2014
The average NBP
day-ahead gas price was
over the first half of
2017 than the same
period last year
The industry could
deliver hundreds
of billions of pounds
in additional revenue
to the UK by 2035
High profile
deals total nearly
$6 billion combined over
the first half of the year
300,000 jobs
in the UK
1
/
3
40%
higher
M A
&
6
3
9
6. UK Continental Shelf
Performance and Opportunity
In Sum
m ar
y
P
e
r for
m ance im
p
r ov
e
m
e nt s h av
e b
e
e n ach ie
v
e d acr oss a r ange
oĨ industry Ŭey ƉerĨormance indicators ;KWIsͿ oǀer the last
12 months͘ Wroduction is still rising, driǀen ďy continued Ɖrogress
in imƉroǀing Ɖroduction eĸciency and ďeƩer Ɖroũect edžecution so
that startͲuƉs are increasingly coming onͲstream on time and ǁithin
ďudget͘ Unit oƉerating costs ;UO sͿ are edžƉected to ďe around
Ψ1ϰͬďoe this year, maŬing ďroǁnĮeld inǀestments more aƉƉealing
and helƉing to edžtend economic Įeld liĨe͘
hallenges remain, hoǁeǀer, and the industry is in urgent need
oĨ Ĩresh caƉital inǀestment, much oĨ ǁhich may come Ĩrom neǁ
entrants to the ďasin͘ This is true across all areas oĨ the ďusiness, Ĩrom
edžƉloration
and aƉƉraisal through to deǀeloƉment oĨ neǁ Ɖroũects
and lat
e
- life m anage
m
e nt of olde
r asse
t s.
A raŌ oĨ D&A actiǀity seen oǀer the Įrst halĨ oĨ 2017, ǁorth almost
Ψϲ ďillion in UK ^ asset and corƉorate Ɖurchases, is a strong ǀote oĨ
conĮdence in a ďasin that has shoǁn imƉressiǀe resilience through
t
h
e m ar ke
t dow nt ur n.
It helƉs that the UK ^ is a more aƩractiǀe Ɖlace to inǀest Ĩor the
long term than it had ďeen Ɖreǀiously, ǁith UO imƉroǀements
gr
e at
e
r t
h an any ot
h
e
r b asin in t
h
e w or ld. F iscal ch ange h as also
ďeen Ɖositiǀe ǁith the highest tadž rate Ĩalling Ĩrom ϴ1 Ɖer cent to
ϰ0 Ɖer cent oǀer the last three udgets͘ The UK noǁ has a Įscal
regime that ranŬs among the toƉ Ƌuartile in terms oĨ ƉreͲtadž ǀalue
r
e
t ur ning t o inv
e st or s. T
h is b ackdr op p
r
e se nt s t
h
e UK w it
h an
immense oƉƉortunity to Ňourish oǀer the nedžt Ĩeǁ years,
madžimising its contriďution to the UK economy͘