Haven Power

Confidence returning to UK oil and gas sector

Confidence returning to UK oil and gas sector


The UK offshore oil and gas industry is now better placed to compete for investment, following a two-year drive to improve efficiency, streamline costs and boost productivity. The findings, in new research from Oil & Gas UK, released on Tuesday 7 March, pointed to a further 5% rise in output to 1.73mn boepd (630m boe pa) in 2016. Production has now been rising since 2015, reversing a 15-year trend of decline, and should continue to rise over the next two years to peak at between 1.8-1.9mn boepd by 2018. Oil & Gas UK Chief Executive Deirdre Michie said: “The revival is led chiefly by exploration and production companies which may collectively see a return to positive cash-flow for the first time since 2013, provided costs are kept under control and commodity prices hold. However, this is unlikely to translate immediately into reinvestment or increased activity.”

Oil & Gas UK