Economic Report 2018

1

2010

2017

2

2018

Number of Exploration Wells

2 0 1 0

Forecast

2 0 1 2

2 0 1 3

2 0 1 6

2 0 1 1

2 0 1 7

2 0 1 4

2 0 1 5

3

10-12

28

14

22

15 13 13 14 14

4

Only 4 exploration wells were spudded in the first 8 months of the year. Although an increase is expected in the second half of the year, exploration activity will remain amongst record-low levels.

5

Number of Development Wells

6

2 0 1 0

2 0 1 5

2 0 1 4

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 6

2 0 1 7 130 123 122 120 126 129 88 71

60-80

7

Development drilling remains significantly challenged, with the outlook remaining around record-low levels. An increase in activity is required to support production and provide new opportunities for the supply chain.

8

Capital Investment (£billion – 2017 Money)

9

2 0 1 4

2 0 1 3

2 0 1 5

2 0 1 2

2 0 1 1

2 0 1 6

2 0 1 0

2 0 1 7

5.5-6

6.7 9.8 11.5 14.8

15

11.7 8.3 5.6

10

Capital investment has fallen due to a lack of new project sanctions and ongoing projects reaching the end of their development cycle. Increased capital efficiency is also being seen in new investments.

11

23