New UK oil forecast as BP profits rise

Oil reserves on the UK Continental Shelf are enough to sustain production for at least the next 20 years, the Oil and Gas Authority (OGA) said in a report.Estimates of the UK’s “significant petroleum reserves” range between 10 to 20 billion barrels of oil equivalent (BOE), according to the UK Oil and Gas: Reserves and Resources Report.The estimates are based on current production forecasts and do not take into account potential finds from future exploration, which could extend production beyond the next two decades, said the report.

Success of UK petroleum requires investment and technology

The maturation of contingent resources – ie, those that are not yet considered mature enough for commercial development – presents “significant opportunity for the continued development of the UK’s petroleum resources”, the report said, adding that such development would require “substantial investment in new field developments and incremental projects”.Gunther Newcombe, OGA operations director, 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.”The estimates were based on a detailed survey by the OGA – the Aberdeen-based industry regulator – of the operators of more than 300 offshore oil and gas fields.

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The report pointed out that 43.5 billion barrels of oil and its gas equivalent had been extracted from UK waters since the offshore industry began production in the 1970s.This has been rising at a slower rate since the start of this century, although new investment has helped increase the production rate slightly over the past two years.

BP doubles its profits in third quarter

Publication of the report coincided with BP’s announcement that it had more than doubled profits in the third quarter after achieving a 14 per cent increase in oil and gas production.The company’s replacement cost (RC) profit over the three months rose to $1.9 billion, compare to $684 million for the same period last year. Over the first three quarters of this year, profits stood at $4.1 billion, up from $2.2 billion over the first nine months of 2016.Bob Dudley, BP chief executive, said, “We are steadily building a track record of delivering on our plans and growing across our businesses.“This quarter, three new upstream projects and the highest downstream earnings in five years, underpinned by reliable operations and disciplined spending, have generated healthy earnings and cash flow.“There is still room for further improvement and we will keep striving to increase sustainable free cash flow and distributions to shareholders.” For related news and features, visit our Enterprise section.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory  

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