ECONOMIC REPORT 2013
26
After this current wave of investment, it is
anticipated that capital investment may fall
to around £8-10 billion a year from 2015
(in 2012 money). However, were the rate
of investment to be below this, at around
£6-8 billion per annum, it would probably
be insufficient to sustain current rates of
production and the programme of works
on asset integrity. On the other hand, if
investment were to rise significantly above
its current rate, it would apply additional
inflationary pressure, as the capacity
of the supply chain would become yet
more stretched.
It is expected that a number of large new
field developments of at least 100 million
boe of recoverable reserves will materialise
in the coming years, including Rosebank,
Bressay and further development of the
Clair field. Additionally, there is a renewed
drive to recover more from existing fields
which should ensure the UKCS remains
healthy. This is being achieved through
improved reservoir management, enhanced
oil recovery (EOR) and other such techniques,
together with continued investment in many
smaller opportunities. All this will need to be
supported by the necessary investment to
extend the life of critical infrastructure.
Operating Expenditure
The costs of operating the fields and their
assets across the UKCS totalled £7.7 billion
in 2012, an increase of ten per cent from the
previous year. A further ten per cent increase
is expected in 2013, such that Oil & Gas UK
estimates that total operating expenditure will
reach £8.5 billion for the year.
Figure 17: Rise in UKCS Operating Costs
3
4
5
6
7
8
9
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
£ Billion (2012 Money)
Source: Oil & Gas UK
0
