One third of UK North Sea projects to become uneconomic
OGUK warned that the falling oil price will render the projects uneconomic and lead to accelerated shut downs
A fall in the oil price to $80 a barrel would make a third of today’s likely future developments in UK waters uneconomic, and would accelerate production shut-downs and decommissioning. So warned the oil producers’ and suppliers’ organisation, Oil & Gas UK (OGUK), in its Economic Report 2014, published in late September. The UK’s oil and gas producers have seen more than a three-fold increase in unit development costs - the cost per barrel of oil equivalent (boe) to be recovered - over the past 10 years, while unit operating costs have risen nearly four-fold over the same period. The only reason the industry has been able to withstand such increases is that oil prices have nearly tripled
Also in this section
23 April 2026
The addition of an oil pipeline to the Power of Siberia 2 gas project could ensure deliveries of Russian oil to China, materially shorten logistics lines between West Siberia and final customers, and—amid disruption in the Strait of Hormuz—offer a land-based export route that reduces exposure to maritime chokepoints
23 April 2026
There is a clear push to bolster exports to Asia amid uncertainty around its North American neighbour, but there are limits to the benefits from the energy crisis
23 April 2026
Shell made the play-opening discovery in Namibia’s Orange basin back in 2022, but its next well could decide whether the project can actually be commercialised
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
