Maximising production of our indigenous hydrocarbon reserves from the UK Continental Shelf (UKCS) is a key part of the governments’ energy strategy.
On this page you can read more about the makeup of the industry in the UK today, the current status of the North Sea and how the government is working with the Oil and Gas industry.
Oil and Gas today
The UK oil and gas market is typified by the presence of large diversified companies with highly vertically integrated operations throughout oil exploration, production, refining, transportation and marketing.
The UK has specific strengths in project management, major contracting, design engineering, asset management, design of advanced equipment, R&D, training and professional and financial services. The UK has seen a significant pipeline of companies bringing their EHQ or HQ to the UK reflecting UK’s corporate and geographical advantages.
North Sea Oil and Gas
The North Sea is expected to continue producing for another 30 to 40 years with potential for a further 25 billion still to come. This will offer new business opportunities for companies with technologies designed to access the more challenging fields. Current projections indicate that around £27 billion will be spent on decommissioning over the next decade. It is expected that 144 fields may start decommissioning by 2020.
The UK’s strong position in the global oil and gas sector is demonstrated by the approximately $10 billion in oil and gas equipment and services being exported each year. The UK oil and gas industry will remain an important player in the world energy scene for decades to come.
Licencing and Government support
Government has worked closely with industry, through the PILOT forum, to create a Regulatory, Fiscal and Political climate which are fair to all stakeholders and aim at ensuring the UKCS remains a competitive and attractive location for oil companies to do business. In recent years the Licensing and Fiscal systems have evolved and policies have been introduced to ensure acreage is in the hands of companies with the expertise, capital and appetite to fully exploit the potential. This has resulted in opening up the North Sea to a diverse range of players, creating opportunities for companies of all sizes and installing a culture of “room for all – need for all”. Even after 40 years of activity, recent licensing rounds have proved to be very popular, with last year’s being the most successful in a decade and bringing in a number of new companies from various part of the world with new expertise and sources of capital.
While there is little doubt the economic conditions of the last 12 months have been exceedingly challenging for all business including Oil and Gas – this sector has possibly fared better than others and this is partly down to the policies and flexible approach taken by the government.
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Countries: United Kingdom