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More oil will be produced in the years to 2050 than previously thought as the Oil and Gas Authority (OGA) identified billions of barrels of extra oil off the UK`s shores.
Oil and gas production is expected to total 11.7bn barrels of oil equivalent (boe) over the period from 2016 to 2050. 2.8bn boe higher than prior estimates.
In 2017. UK production was sustained at 1.63m boe per day (boepd). its highest rate since 2011. though it would have risen slightly if the major Forties pipeline in the North Sea had not closed in December because of a cracked pipe.
Production in 2018 is set to increase as new fields come on stream. However the group`s figures show output will begin to slide back down from 2020.
“The extra 2.8bn barrels identified shows the future potential of the basin which could be boosted further through investment and exploration successes.` said Andy Samuel. the OGA`s chief executive.
Julia Derrick. oil and gas partner at law firm Ashurst. said the new estimates were proof of the positive impact of the implementation of the Wood Review. a report commissioned by the government and produced by industry veteran Sir Ian Wood in 2014. The report made key recommendations on how to maximise the economic recovery of the sector.
The OGA also found capex fell `significantly` for the third year in a row. and it is expected to keep falling for the foreseeable future.
Operating costs rose marginally last year. but they were still 27 per cent below the high seen in 2014 when oil prices crashed.
Meanwhile decommissioning costs rose four per cent in 2017 and are expected to stay around current levels in the medium term. Projections to 2022 show slighly lower costs than previously expected.
