Economic Report 2018

ECONOMIC REPORT 2018

3.5 UKCS Exploration and Production Performance

Figure 10: Key E&P Performance Indicators at a Glance

2010

2017

2018

Production (Million boepd)

Forecast

2 0 1 0

2 0 1 1

2 0 1 7

2 0 1 6

2 0 1 5

2 0 1 2

2 0 1 3

2 0 1 4

1.7- 1.75

2.23

1.81

1.42 1.42 1.54

1.57 1.64 1.64

The recent strong production performance on the UKCS has continued into 2018, with production in line with the first half of 2017 and 4% up on the total 2017 average.

Operating Expenditure (£billion – 2017 Money)

2 0 1 4

2 0 1 3

2 0 1 5

2 0 1 2

2 0 1 0

2 0 1 1

2 0 1 7

2 0 1 6

7-7.5

7.4 7.4 7.8 9.1 9.8

8.3 7 7

Following a period of significant realignment, operating expenditure has returned to levels in line with the longer-term trend prior to 2012.

Unit Operating Costs ($/boe – 2017 Money)

2 0 1 4

2 0 1 3

2 0 1 2

2 0 1 5

2 0 1 1

2 0 1 6

2 0 1 7

2 0 1 0

15.8- 16.4

13.2 17.1 20.8 26.2

29.6

21 15.2

15.2

Unit Operating Costs halved between 2014-16 and have now stabilised around $15-16/boe.

22