Challenges aplenty but opportunity remains for UKCS
There is life in the old North Sea dog yet
The UK continental shelf (UKCS) will, despite its maturity, remain an important region in the global oil and gas sector. It is a key provider of benchmark crude in Europe and has both a relatively stable fiscal regime and a diverse and dynamic corporate landscape—supporting high levels of M&A activity, with recent growth from independents facilitating portfolio rationalisation by large IOCs. Production from the UKCS peaked at the turn of the millennium at 5.4mn bl/d oe, before falling by 65pc, to 1.9mn bl/d oe, in just 12 years. A raft of field allowances introduced by the UK government in 2012 contributed to several >100mn bl oe projects being sanctioned, including TotalEnergies’ Lag
Also in this section
29 April 2024
Although recent, firmer gas prices have blunted some price-sensitive demand, the overall growth outlook remains robust
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions