WIRELINE ISSUE 27 SPRING 2014

Activity Survey 2014 Wireline presents some of the key facts and figures fromOil &Gas UK’s Activity Survey 2014.

POLITICAL SUPPORT

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WHATTHEMINISTERSSAID…..

UKBusiness andEnergyMinister Michael FallonMP “The Activity Survey is very timely. The launch of the WoodReview (see p25)made clear that there are still vast reserves of unexploitedoil and gas in theNorth Seawhich can be harnessed for the benefit of thewhole country. “Oil &GasUK’s Activity Survey shows thatwhile the industry is facing key challenges such as explorationwe are seeing high levels of capital investment in the UKoffshore oil and gas industry. Iwant the industry to buildon this and that iswhy I launched the 28th round of offshore petroleum licensing [in January]. This round forms part of our long-term economic plan thatwill enable the explorationnecessary to ensurewe fully realise our remaining reserves. Thiswill boost growth, energy security, and jobs.” ScottishEnergyMinister Fergus EwingMSP “This Activity Survey demonstrates the range of opportunities and challenges facing theNorth Sea oil and gas industry at this time.Onone handwe are currently experiencing an investment boomwith an estimated £14.4 billionof capital investment in2013, almost double 2010 levels.However, at the same time, exploration activity in theNorth Sea remains below trend. I strongly agreewith the conclusions of the Activity Survey that while theNorth Sea still holds significant potential – maximising the return fromour oil and gas resourceswill require the appropriate business conditions for investment in exploration, appraisal anddevelopment. The goodnews is thatwe now have Sir IanWood’s key recommendations on how to take the regulationof the industry forward. These should be implemented as soon as possible. “To encourage the investment, exploration and innovation required tomaximise the return from theNorth Sea, it is important that industry has confidence that government canprovide the certainty it requires. That iswhy the ScottishGovernment appointed an Independent Expert CommissiononOil andGas in September 2013, chaired byMelfortCampbell. TheCommissionwillmake specific proposals in relation to theNorth Sea fiscal regimewith a view toproviding long-term stability andpredictability for the industry.” WoodReview (see p25)made clear that there are still vast

TheUKContinental Shelf isseeing record capital investmentwith£13billion tobe invested in2014, following£14.4billion in2013 £13 billion

25 25newfields are expected to come on-streamover the next twoyears

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THE MAGAZ I NE FOR THE UK OF F SHOR E O I L AND GA S I NDUS TRY