North Sea Total Field Expenditures Could Hit Nearly $400B to 2050

Total field expenditures in the North Sea could amount to $378 billion (GBP 268 billion) over the next three decades, according to Alex Kemp, professor of petroleum economics and director of Aberdeen centre for research in energy economics and finance at the University of Aberdeen.

The projection was outlined in a study that Kemp will present at the University of Aberdeen on Wednesday. In the study, Kemp also predicts that total operating expenditure could be around $175 billion (GBP 124 billion) to 2050, while total decommissioning expenditure could be around $76 billion (GBP 54 billion). 

In a statement on the University of Aberdeen’s website, Kemp highlighted that the geographic pattern of activity will change by 2050, with oil production in the West of Shetland region becoming “increasingly important for both production and investment”.

Earlier this month, Wood Mackenzie highlighted that several key exploration and appraisal wells are planned in the West of Shetland region in 2018, which could start “a new wave of UK projects.”