PETROLEUM and oil reserves in the UK and UK Continental Shelf (UKCS) could sustain production for the next 20 years – and beyond – if more undeveloped resources can be extracted, according to the industry regulator.
However, the Oil and Gas Authority (OGA) has reduced its estimate of the amount of known oil and gas reserves remaining under UK waters.
Its report published yesterday showed that overall remaining recoverable reserves ranged from 10 to 20 billion barrels of oil equivalent (BoE).
The OGA estimated current reserves that can be extracted of around 5.7bn BoE at the end of 2016 – down from 6.3bn BoE at the end of the previous year, which would be enough to sustain production for at least the next two decades.
It added that there was a “significant opportunity” to add to this total from the 7.4bn BoE of “proved undeveloped resources” – much of which was in mature developed areas and being considered for development. The OGA said this would need substantial investment in developing new fields and other projects.
However, the regulator said the replacement of proven and probable reserves remained a concern.
It pointed out that around 600 million BoE were produced in 2016, but only 80m of contingent resources (potentially recoverable from known fields, but not yet commercially viable) were matured to reserves.
The OGA said exploration success last year helped add 210m BoE to the contingent resources. Its current estimate of prospective (undiscovered) resources is 6bn BoE, with a lower estimate of 1.9bn BoE to an upper estimate of 9.2bn BoE.
OGA operations director, Gunther Newcombe said: “The UKCS is a world-class petroleum province with 10 to 20 billion barrels of remaining discovered and undiscovered potential. The OGA has an important role in helping to steward this resource base, revitalise exploration and maximise economic recovery, working closely with industry and government.
“Future success of the basin requires attracting additional investment, implementing technology and company collaboration on new and existing developments.”
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