Filed under: Uncategorized | Tags: Brent crude, energy, North Sea, offshore oil production, oil production, peak oil, UK
Long peaked, declining rapidly and getting really expensive.
The sharp decline in production of oil and gas from under British waters is “worrying” industry leaders.
Trade body Oil and Gas UK says there is record investment this year of £13.5bn.
But its annual report on the industry’s economic impact highlights the sharp fall in output of 19% during 2011 and 14% in 2012.
It says the industry’s latest estimates of the continuing decline suggest a further fall of at least 8.5% during this year, with no recovery next year.
Because of challenging geology and unplanned shutdowns on offshore platforms, the unit cost per barrel for extracting oil from British waters, known as the UK Continental Shelf (UKCS), has gone up four-fold over the past decade.