North Sea news round-up: January
As February 2014 arrives, we look back at January as a month of reports and reflection on the North Sea in 2013. Renown Oil & Gas came across a couple of reports from Wood Mackenzie and Deloitte giving good insight into what was learned from 2013 and also looking ahead in 2014:
2013: rising North Sea fields starting production but lowering exploration and appraisal drilling
It seems that government incentives sparked higher production levels than in previous years, but exploration levels and drilling in the UK Continental Shelf (UKCS) are down, with tight margins and the cost of operation believed to be behind the decline.
Deloitte’s January report summarises:
- Fields starting production at highest level for five years
- 27th licensing round saw a record 219 applications
- Drop in exploration and appraisal drilling suggests government incentives required
Looking ahead: The North Sea in 2014
We summarised the Wood Mackenzie annual UK upstream oil and gas review, which, similarly to Deloitte, indicated that in 2013 the North Sea took a hit in exploration but did suggest reasons to be optimistic in 2014. Wood Mackenzie suggest that new fields and deal activity will rise in the year ahead.
Read more here:
- ‘Deloitte: Production, licensing climb in North Sea for 2013’ >>
- ‘2013: a mixed year for the UK North Sea’ >>
- UK upstream oil and gas sector ‘facing pivotal year’ >>