$264B Needed to Realize UK's Oil and Gas Vision
$264.6 billion (GBP 200 billion) will need to be spent by exploration and production (E&P) companies in existing operations and new opportunities to realize the UK oil and gas industry’s Vision 2035, new findings in a report published Wednesday have revealed.
The amount will be required between 2019 and 2035, according to the Oil & Gas UK report, which highlighted that pre-tax E&P expenditure on the UK Continental Shelf (UKCS) was $18.9 billion (GBP 14.3 billion) in 2018 ($20.3 billion (GBP 15.4 billion) post-tax). An increase in pre-tax E&P expenditure to more than $19.8 billion (GBP 15 billion) ($21.6 billion (GBP 16.4 billion) post tax) can be expected this year, the report outlined.
The report shows that total production from the UKCS was around 619 million barrels of oil equivalent in 2018. This figure marked a four percent increase on 2017 and a 20 percent rise over the past five years, the report highlighted.
Oil & Gas UK’s latest report also showed that companies are looking to maintain unit operating costs at current levels and that up to 15 exploration wells are expected in 2019.
“Our business outlook report 2019 shows that industry’s approach during the downturn is delivering results,” Oil & Gas UK Chief Executive Deirdre Michie said in an organization statement.
“This is a UK industry which is critical for security of energy supply, at the heart of the move to a lower carbon economy, supports hundreds of thousands of jobs and contributes billions to the economy,” Michie added.
“With the new reality clear and clarity around the future potential, there is all to play for,” Michie continued.
Commenting on Oil & Gas UK’s business outlook report, Graham Hollis, senior partner for Deloitte’s Aberdeen office, said it demonstrates the industry’s “ongoing resilience and optimism”.
Hollis added that “fresh and forward-thinking” approaches to collaboration and business models in the oil and gas industry “remain crucial to ensuring the UKCS’s competitiveness and longevity as well as supporting that of its critical supply chain mass”.
According to Oil & Gas UK, Vision 2035 is a framework for the industry’s shared future ambitions and aims to add a generation of life to the basin, whilst doubling the supply chain’s global footprint. Oil & Gas UK and the Oil & Gas Authority are jointly leading the project.
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