The UK oil and gas sector is expected see between 12 and 16 oil and gas developments get the go-ahead this year – unlocking investment of around £5 billion, (almost 7 billion U.S. dollars).
This is according to the Business Outlook released on Tuesday by Oil & Gas UK. The expected number of new sanctions is more the new oil and gas field approvals sanctioned over the last three years combined.
The Oil & Gas UK says the expected oil and gas developments promise “a much-needed” business boost for the supply chain.
“The greenfield and major brownfield developments, set to be approved this year, could yield more than 450 million barrels of oil and gas over time which the trade body says is good news underpinning the production outlook – though still falls short of the level required to sustain long-term production at current levels,” OGUK said.
Better year ahead
While the project landscape for 2018 is the healthiest the industry has seen since 2013, greater exploration success and maximizing the potential within existing assets are essential for the future, says Oil & Gas UK.
“Our sector is leaner, more efficient and more optimistic than it has been in recent years and 2018 looks set to be a better year, “ said Deirdre Michie, Chief Executive of Oil & Gas UK.
“What we have learned in our response to the downturn has made us better equipped to tackle the ongoing challenge of maximizing production for the longer term and boosting profitability in the supply chain but without increasing overall project costs or damaging competitiveness. Our remarkable resilience owes a great deal to the ingenuity and innovation of our people.
“More projects are taking place and investment is happening because of the sweeping changes made to adapt to the challenging business climate. This has helped make the UKCS one of the most attractive mature basins in the world in which to do business and we will continue to work hard to maintain our competitive advantage.”
Deirdre Michie added: “We must recognize that many areas of the supply chain are still struggling with the impact of the downturn and have yet to benefit from any upturn in activity.
“It’s vital that we keep driving fresh thinking, innovative approaches and efficiency efforts. The short-term outlook for our sector is more positive with new projects and new entrants bringing new life to the basin, but there are undoubtedly longer-term challenges.”
Offshore Energy Today Staff