Oil and gas production rises for first time in 15 years

UK oil and gas production has risen for the first time in 15 years, according to official figures.

Data for the first 10 months of 2015 show the total volume of oil and gas produced on the UK Continental Shelf had increased by 8.6 per cent compared with 2014, with the production of liquids up 10.6 per cent and gas up 6.1 per cent.

But while industry body Oil & Gas UK expects year end production for 2015 to be seven to eight per cent higher than last year, it warned that “times are really tough for this industry and for the people working in it”.

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SNP Energy spokesperson Callum McCaig said: “Industry-led initiatives to increase production efficiency are reaping positive results; however dithering from the Tory government in incentivising exploration and development of new prospects is still a serious concern. In fact, it is an approach which shows utter disdain for an industry under pressure.

McCaig added: “It’s high time the Chancellor heeded the SNP’s longstanding call to introduce exploration incentives in the North Sea, to protect jobs and sustain a vital industry.” 

OGUK’s chief executive Deirdre Michie said: “Given the difficulties being faced by the industry this is welcome news.  In February 2015 we predicted a marginal increase in production for 2015, but the industry-wide focus on improving production efficiency coupled with investments of more than £50 billion over the last four years to bring new fields on stream across the last twelve months is paying off and yielding a better result.

“The upturn underlines the industry’s commitment to the UKCS – which still holds great promise for the future and is vital for the country’s security of supply. For example, only last week, oil company Taqa announced first production from the Cladhan field north-east of Shetland, estimated to produce 10,000 barrels of oil a day from the UK’s waters.”