Economic Report 2023 - Offshore Energies UK (OEUK)

Figure 11 Historic oil and gas production and proven & probable (2P) reserves

60,000

Cumulative oil & gas production 2P oil & gas reserves

50,000

40,000

30,000

20,000

possible reserves (million boe)

10,000

CUmulative production and remaining proven and

0

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Source: NSTA, OEUK

The UK’s offshore production comes from 283 producing fields of widely varying sizes holding different ratios of oil to gas. Of these, over 180 are expected to stop producing this decade. These specific fields produced 45% of UK oil and gas output last year. At least 20 fields will stop producing this year alone and only two fields will start up. The impacts of these trends are already being seen in production. Output in the first five months of this year was down by a tenth from the same period last year (6% decline in gas production and 12% for oil) and down by a fifth from 2018. This is double the

rate of decline in oil and gas consumption, leaving the country relying on net imports for around one-third for oil and just over half for gas. This gap will grow in the years to come and could reach 80% in 10 years, without timely new investment. This would leave the UK more exposed to price shocks and volatility, along with increased potential for supply disruptions. It would also have a negative impact on the outlook for the supply chain and its vital contribution to the growth of new energy and emissions solutions.

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ECONOMI C REPORT 2023