Unit operating cost improvements have been greater in the UK than any other basin since 2014. The UKCS now ranks in the
Economic Report 2017 - Facts and Figures
Economic Contribution Indigenous oil and gas production contributed around
The UK Government forecasts that
Every £1 million of industry expenditure sustained around 17 jobs across the UK economy last year
The oil and gas industry supports over
2/ 3
£17 billion
to the UK’s balance of trade
of the UK’s energy mix will still come from oil and gas by 2035
The UK supply chain is a world leader
with unrivalled experience in maximising recovery from a mature basin
300,000 jobs in the UK
The Business Environment The average Brent oil price was
40
30% higher over the first half of this year than the same period last year
The cost of industry trade could increase by as much as
The average NBP day-ahead gas price was
hig
%
£500
he r
million
per annum if the UK reverts to World Trade Organization rules
over the first half of 2017 than the same period last year
Creating a Long-Term Future The industry could deliver hundreds of billions of pounds in additional revenue to the UK by 2035 Vision 2035 will require an integrated policy approach between industry and government
sets out aspirations for the industry
UK Continental Shelf Performance and Opportunity UKCS production has increased by
By the end of 2018 over
16%
1/ 3
since 2014, following over a decade of continual decline
of total production will come from start-ups post-2016
Drilling activity must increase to continually replenish the pipeline of opportunities
Unit operating cost improvements have been greater in the UK than any other basin since 2014
Capital investment in the basin is forecast to fall further over the next two years
The UKCS now ranks in the top quartile globally for fiscal attractiveness
High profile
M
&
A
deals total nearly $6 billion combined over the first half of the year
The UK faces a significant production decline
2020 post
Fresh capital in the basin is urgently needed
oilandgasuk.co.uk/economicreport
Decommissioning is the only area of increasing expenditure at 7 per cent of total industry spend last year
