Surprise boost for North Sea production

Britain’s oil and gas fields increased production for the first time in more than 15 years during the first 10 months of 2015

Britain’s oil and gas fields increased production for the first time in more than 15 years during the first 10 months of 2015. 

Government statistics show an 8.6% rise from the same period a year earlier, resulting in a potential production increase of between 7 and 8% for the overall year, said the industry body Oil & Gas UK. 

The larger than expected increase was welcomed by the organisation, but it warned that further improving production in 2016 would be extremely difficult, owing to the slump in oil prices. 

Deirdre Michie, Oil & Gas UK’s chief executive, said: “Output in November and December tends historically to be more stable but, even so, Oil & Gas UK now expects production for the full year of 2015 to be 7 to 8% higher than last year. 

“Given the difficulties being faced by the industry, this is welcome news. In February 2015 we predicted a marginal increase in production for 2015, but the industry-wide focus on improving efficiency coupled with investments of more than
£50 billion over the last four years to bring new fields on stream across the last 12 months is paying off and yielding a better result.

“The upturn underlines the industry’s commitment to the UK Continental Shelf, which still holds great promise and is vital for the country’s security of supply. For example, oil company Taqa has announced its first production from the Cladhan field north-east of Shetland, estimated to produce 10,000 barrels of oil a day from the UK’s waters.”