Tuesday 20 March 2018

Oil and gas investment ‘to eclipse previous three years’

More new investment in oil and gas is expected in 2018 than in the last three years combined.

That’s according to a new report from Oil & Gas UK, which says between 12 and 16 oil and gas developments could get the go-ahead this year, unlocking a total investment of around £5 billion.

It suggests these projects could yield more than 450 million barrels of oil and gas over time, which would see production increase by 5%, a fifth higher than five years ago.

The trade body says although this is good news, it still falls short of the level required to sustain long-term production at current levels.

The study adds maximising the potential of existing fields is the key to sustaining production into the 2020s.

Deirdre Michie, Chief Executive of Oil & Gas UK, said: “Our sector is leaner, more efficient and more optimistic than it has been in recent years and 2018 looks set to be a better year.

“More projects are taking place and investment is happening because of the sweeping changes made to adapt to the challenging business climate.”