Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

New North Sea oil report shows economic contributions until 2060

3/09/2014 by

W1siziisijiwmtqvmtavmjgvmtuvmtyvndqvodu2l2zpbguixsxbinailcj0ahvtyiisijywmhg0mdbcdtawm2uixv0

A new report investigating the contribution of North Sea oil operations to the Scottish economy has found that money is likely to be made until 2060 at the very minimum. Many have welcomed the publication, with officials happy that petroleum extraction will continue to fuel the nation, both literally and financially.

Alex Kemp, the University of Aberdeen’s professor of petroleum economics, revealed the latest findings, saying: “Oil and Gas UK say there is the 15-24 billion barrels oil equivalent, but nobody knows with any certainty how much more is actually left. My view is that the reserves will last beyond 2060.” Professor Kemp's comments are in complete opposition to those revealed last month by the Wood Group’s Sir Ian Wood. Sir Ian said he thought there were only 15 years left of reserves, after which time the economy would start to feel the downturn in production.

It seems there are many who believe Sir Ian’s words to be incorrect, one being Professor Kemp. The university professor believes that gas and oil reserves located off Scotland’s north coast have been underestimated on an ongoing basis, though he was quick to point out that he did not think these low estimations had been made deliberately. Professor Kemp explained that estimates made when oil was first found in the 1970s could have been wrong due to the simplistic technology and knowledge base utilised at that time; for example, west of the Shetland Islands is the Clair field. When first discovered in 1977, many realised it was totally uneconomic; however, as technology modernised and horizontal drilling was developed, operations have successfully started. Clair is now the largest field in Britain and produces oil worth $100 a barrel.

In the past, the industry has not been fast at developing schemes to enhance oil recovery, meaning that many difficult fields have not fully been exploited.

“The industry has been slow to introduce enhanced oil recovery schemes, on the grounds that off-shore it was too expensive to do things that could be done on-shore in the US, for example. But now this is getting underway in a few fields and my own view is that we will see more of this. That could see worthwhile increase in the reserves that are viable,” Professor Kemp continued.

The professor’s views have been welcomed, particularly by Fergus Ewing, the spokesperson for the Scottish National party. Mr Ewing pointed out that Professor Kemp is a leading oil economist and, as such, he warmly welcomes the extended prediction of North Sea oil production until 2060.

This article has been written by Montash.

Montash is a multi-award winning, global technology recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Energy Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtyvmtivmdivmtavmdcvntcvotkwl2j1c2luzxnzigludgvsbglnzw5jzs5qcgcixsxbinailcj0ahvtyiisijm4mhgxmdajil1d

Annual growth rate for BI market set at 8.4%

2016-12-02 10:00:00 +0000

A new report has suggested that the compound average growth rate (CAGR) for the business intelligence (BI) market between 2016 and 2021 is likely to be around 8.4 per cent. The latest publication, named Global Business Intelligence Market by Mobile BI, Cloud BI, and Other Applications: Global Industry Perspective, Comprehensive Analysis and Forecast, 2015-2021, said that 2015 saw the global BI sector valued at $16.33 billion. By 2021, this is expected t...

W1siziisijiwmtyvmtevmzavmtavmjavntuvndgzl09jbcbyawcgc2vhlmpwzyjdlfsiccisinrodw1iiiwimzgwedewmcmixv0

Crisis in oil and gas industry nears turning ...

2016-11-30 10:00:00 +0000

A new report has suggested that the current crisis being experienced by the gas and oil industry is nearing a turning point. As part of the 25th Oil and Gas Survey, it was found that although two-thirds of firms had cut employment levels in 2015, the speed at which these cuts are occurring has slowed. In addition, other methods of saving have been utilised to drive operational costs down. Amongst the firms questioned, it was found that 67 per cent of bu...