Provisional figures released by Oil and Gas UK reveal that oil and gas production is predicted to rise for the first time in over a decade. Initial estimates show a 2.5% rise for 2015’s first half in comparison with 2014, the organisation said. This would mean that the energy sector is finally seeing some good news, with companies and workers alike expected to welcome the announcement.
The energy sector has been in crisis for some time, with plummeting oil price and numerous job cuts in the offshore energy operation becoming a major concern for many experts and workers within the sector; however, the latest news from Oil and Gas UK is being seen as positive. It has been suggested that one of the key reasons for the growth is the Golden Eagle field, which only began producing fuel in November 2014. Despite low oil prices, news of increased production could herald the start of a degree of stabilisation for the sector.
Deirdre Michie, the chief executive of Oil and Gas UK, spoke about the figures before the latest publication is made available next month. “Recent provisional figures from the Department for Energy (DECC) suggest that oil and gas production from the UK continental shelf (UKCS) over the first six months of this year could be 2.5% higher than the same period last year,” Ms Michie said. “It’s still early days but initial indications suggest that production could increase this year for the first time in 15 years.” Ms Michie added that the provisional data for liquids production over the first half of the year was up by around 3%; meanwhile, net gas production is set to be 2.5% higher than in 2014.
There was also good news for ongoing production, with Ms Michie suggesting that encouraging figures are expected for the coming months. May, for example, saw the most gas and oil produced on the UKCS since March 2012. July and August, traditionally two of the year’s most uncertain months, will add more certainty to the figures by the end of the summer. “Clearly the oil price – which has more than halved since this time last year – continues to really challenge the industry,” she said.
The positive news for the industry can be attributed to its hard work and investment at a disconcerting time. For those working in the sector, the newest predictions offer some optimism.
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