Economic Report 2021 - OGUK

£21 bn

£21bn of capital in company plans from 2021–25 – 75% brownfield projects, 25% greenfield

£14.5 bn

£14.5bn of investments yet to be sanctioned

2/3 Brownfield

Brownfield is the area of greatest opportunity – representing 2/3 of unsanctioned activity

OGUK has visibility of around £21 billion of potential capital within E&P plans between 2021–25 which would unlock 2.7 billion boe over the production period, however less than one-third of this (£6.6 billion) has been fully committed by companies. In a no-further-investment case, total capital could fall to less than £1 billion per year by the middle of the decade. Such a scenario would lead to the UK providing less than one-third of the CCC Balanced Net Zero Pathway demand for oil and gas (a net- zero aligned forecast) by 2027. This would see the UK’s reliance on imports grow to supplement the demand gap, damaging the economy and reducing energy security. It would also limit the energy service’s export opportunity which is currently valued at just less than half of company oil and gas turnover recorded in 2019. 10

Half of CAPEX opportunity is in wells activities, 2/3 of which is unsanctioned and brownfield

50% £9.5 bn £2 bn

£9.5 bn opportunities in facilities investment – most of which is greenfield work

There is also an estimated £2bn in OPEX opportunity within these unsanctioned projects

10 transition-will-shape-the-industry/ey-uk-energy-services-overview.pdfs


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