Market Insight December 2017

1. Introduction W elcome to Oil & Gas UK’s Market Insight which provides an overview of the current business environment, while informing on the latest operational trends and performance on the UK Continental Shelf (UKCS). Our Market Insight will be published every six months, with each edition featuring a different focus area. This edition puts a spotlight on the work the industry and the Oil and Gas Authority (OGA) are doing to achieve success in the wells area.

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Figure 1: UK Offshore Oil and Gas Industry Dashboard 1

2015 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 54.0 61.7 50.4 43.5 33.9 45.6 45.8 49.1 53.6 49.6 52.1 47.9 44.6 41.5 36.7 30.4 31.4 31.0 45.7 48.2 38.0 41.5 2016

Oil Price ($/bbl) Gas Price (p/th) Total Production (Million boe) Liquids Production (Million boe)

144.4 157.8 134.1 159.8 162.4 155.2 148.3 157.8 163.0 158.9 141.1

83.4 93.7 80.5 94.0 98.2 94.4 88.0 90.0 94.3 93.4 88.9

Gas Production (Million boe)

61.1 64.1 53.6 65.8 64.2 60.8 60.4 67.8 68.7 65.6 52.2

Total Expenditure (£ Billion) Operational Expenditure (£ Billion)

21.9

17.4

17

8.3

7

7.7

Capital Expenditure (£ Billion)

11.6

8.3

6.9

Exploration and Appraisal Expenditure (£ Billion) Decommissioning Spend (£ Billion)

0.8

0.7

0.6

1.2

1.4

1.8

Total Well Count Exploration Wells Apprasial Wells Development Wells

36 44 54 21 26 25 26 32 29 24 31

2 7

5 2

6 3

0 1

1 0

5 2

3 3

5 3

2 0

3 1

9 6

27 37 45 20 25 18 20 24 27 20 16

Total Process Hydrocarbon Releases

15 18 25 25 22 11 13 7 18 19 16

Carbon Intensity (kTCO 2

22

21

N/A

per Million boe)

1 The components of production and expenditure may not sum to the total due to rounding.

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