UKCS Hits Target 3 Years Early
The UK Oil and Gas Authority (OGA) revealed Thursday that the production efficiency (PE) of the UK Continental Shelf (UKCS) has reached 80 percent, three years ahead of target.
The 2019 PE figure of 80 percent marked a five-percentage point increase from 2018 and a seventh consecutive year of improvement, the OGA highlighted. Every region of the UKCS was said to have reported a PE rise, except the West of Shetland which saw no change.
According to the OGA, the PE increase was driven by a 25 percent reduction in production losses, “following concerted effort by the industry”. The OGA noted that increased production efficiency often corresponds to lower emissions intensity on production facilities.
“The sustained rise in production efficiency represents a significant achievement by the industry, which plays an important part in both maximizing economic recovery from the UKCS and helping in the drive towards lower emissions intensity,” Hedvig Ljungerud, the OGA director of strategy, said in an organization statement that posted on the OGA’s website.
“The twin challenges of Covid-19 and the fall in commodity price have placed the industry under pressure, but operators’ long-term improvement in production efficiency leaves them in a better position,” Ljungerud added in the statement.
Commenting on the UKCS’ latest PE numbers, Michael Burns, an energy partner at law firm Ashurst, said, “these efficiency figures are a testament to the industry's sustained efforts over recent years to reduce inefficiencies and modernise operations in the North Sea against a backdrop of more challenging market conditions”.
“This year's pandemic has thrown up a completely unexpected challenge for the industry, and while improved efficiency no doubt made it slightly easier for oil and gas companies to respond to the economic downturn, it is clear that the industry continues to face challenges in order to manage the impacts of the current economic environment,” he added.
OGA data stretching back to 2009 shows UKCS PE hit a low of 60 percent back in 2012 before recording a 20 percent rise over the last few years. In 2009, this figure stood at 72 percent.
As of July 30, there have been 301,459 confirmed cases of Covid-19 in the UK, with 45,961 deaths, according to the latest information from the World Health Organization (WHO).
The OGA’s role is to regulate, influence and promote the UK oil and gas industry in order to maximize the economic recovery of the UK’s oil and gas resources, according to the organization’s website.
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