Economic Report 2017
E C ONOM IC R E P OR T 2 0 1 7
6 .1 Ke y P e r for m ance Indicat or s T h e UKC S h as m ade significant p r ogr e ss in r e ce nt y e ar s acr oss a r ange of ke y m e t r ics. T h is is unde r p inne d b y ne w b usine ss m ode ls t o m ax im ise v alue fr om b ot h lat e - life op e r at ions and ne w fie ld st ar t - up s. E x am p le s include m ov ing t ow ar ds ince nt iv e - b ase d cont r act s r at h e r t h an cost - p lus and adop t ing assetͲĨocused ďusiness structures rather than traditional ĨunctionͲled models͘ hallenges remain, hoǁeǀer, and the industry is in urgent need oĨ Ĩresh caƉital inǀestment across all areas, Ĩrom edžƉloration and aƉƉraisal through to deǀeloƉment oĨ neǁ Ɖroũects and lateͲliĨe management oĨ older assets͘
Figure 21: Industry Key Performance Indicators 18
Production
Exploration Wells Spudded
16
8 00
14
7 00
12
6 00
10 tnuoC lleW noitarolpx E
5 00
Wroduction incr e ase d t o 6 30 m illion b oe in 201ϲ, the h igh e st since 2011
2 4 6 8
Only 14 w e lls w e r e sp udde d
4 00
3 00
in 201ϲ, halĨ the num b e r r e cor de d in 2010
Total Production ( Millionboe)
2 00
100
0
0
2 013
2 014
2 015
2 016
2 017
2 018
2 013
2 014
2 015
2 016
2 017
2 018
Source:OGA,Oil&GasUK
Source:OGA,Oil&GasUK
Appraisal Wells Spudded
Development Wells Spudded
E igh t y - se v e n de v e lop m e nt w e lls w e r e sp udde d in 201ϲ, a reduction of one - t h ir d on 2015
3 5
14 0
Only e igh t ap p r aisal w e lls w e r e sp udde d in 201ϲ, the loǁest since 197 1
3 0
12 0
2 5
100
tnuoC lleW tnempoleve D
tnuoC lleW lasiarppA
2 0
8 0
6 0
15
4 0
10
2 0
5
0
0
2 013
2 014
2 015
2 016
2 017
2 018
2 013
2 014
2 015
2 016
2 017
2 018
Source:OGA,Oil&GasUK
Source:OGA,Oil&GasUK
18 All Įnancials shoǁn in 201ϲ money͘
4 0
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