Research Presentation
Outlook for the UKCS
This report is currently unavailable
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The UKCS is a critical juncture. Recent exploration has been disappointing, with poor exploration success rates and volumes discovered at levels below commercial thresholds. This, along with high costs, contributed to a declining capital investment outlook, even before the slump in oil price. Following the drop in oil price, we present our revised outlook for capital spend and assess how robust the pre-sanction projects underpinning this profile are. Positively, production stabilised in 2014 and we expect a modest rise out to around 2018 as some key new projects are brought onstream. However, downside risk remains from delays to new project sanctions, poor project execution and exploration success. The decommissioning glut is looming. We estimate that around £3 billion has been spend on decommissioning so far, with £54 billion still to be spent.
Table of contents
- No table of contents specified
Tables and charts
No table or charts specified
What's included
This report contains:
Other reports you may be interested in
Asset Report
Beatrice
The Beatrice oil field in the Moray Firth ceased production in 2014 and is currently being decommissioned.
$3,720
Insight
How might sustained higher prices impact North Sea output?
Producers were unprepared for this latest shock, but upside is possible
$1,350
Asset Report
Indonesia Kutei exploration basin
A giant gas discovery and exploration upside could improve value creation in the Kutei Basin by providing more development opportunities
$2,800
