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ECONOMIC REPORT 2015
31
545
521
548
548
569
532
Contribution from New Fields
Reduction from Existing Fields
0
520
530
540
550
560
570
2014/15
2015/16
Total Production (Million boe)
Source: Oil & Gas UK
beginning to pay off, demonstrated by the annual rate
of production decline from existing fields slowing to just
over four per cent in 2014, compared to 15 to 20 per
cent over 2011 and 2012. The reduction in the number
of unplanned outages and better general reliability
are signs of the improvement in asset management.
This has been achieved through means such as the
activities of the Production Efficiency Taskforce,
sponsored by both Oil & Gas UK and government.
With greater confidence in the performance of the
existing asset base, Oil & Gas UK also expects new
start-ups to have a further beneficial impact on
production over the next few years. New fields that
have come on-stream since 2010 accounted for over
ten per cent of total UKCS production in 2014.
Production from new fields over the next three to
four years is anticipated to sustain the upturn over the
remainder of the decade while also lowering unit costs
(typically forecast to be £6-12/boe).
For the basin as a whole, the combination of both a
falling cost base and a slowing production decline rate
means a significant improvement in average UOCs on
the UKCS. From an average of £17.80 in 2014, the cost
of producing a barrel of oil or gas could fall to around
£15/boe by the end of 2016.
Figure 16: Production Changes (New versus Existing Fields)
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