North Sea – Hope for Declining Production?

Posted by Michelle Howard
Monday, May 12, 2014

Western Europe will continue to rely on imported Russian gas into the 2020s as mature offshore provinces struggle for growth, while large-scale shale gas extraction looks increasingly unlikely in the medium term, according to Douglas Westwood. Following Moscow’s intervention in Ukraine and the resulting strained diplomatic ties with the West, it remains to be seen if North Sea production can rally to support any drop in gas flow from Russia.
 


With many IOCs planning investment into UK offshore fields through enhanced oil recovery (EOR), deeper water plays and downstream infrastructure upgrades, our Development Drilling & Production Forecast predicts that production will rally slightly to around 1.75 million b/d by 2017, requiring a maintaining of the recent 6% jump in well completions. The necessary high levels of expenditure are unlikely to be sustained in the long-term due to the UK’s offshore maturity; therefore, DW expect a resumption of decline towards the end of the decade. Hope for any long-term growth rests with much-needed reform of the UK’s offshore regulator, which must swiftly adapt to the shift towards production from smaller fields.
 


On the other side of the North Sea, Statoil are to attempt improved recovery from brownfield projects offshore Norway. Along with the start of projects in the large Johan Sverdrup and Goliat fields, this will see the number of well completions sustained at around 200 a year beyond 2020. DW expect these projects will see Norway break from the mould of other mature Western European producers and sustain production into the next decade. It must be noted, however, that both of these fields are currently subject to delay. Johan Sverdrup is facing electrification issues whilst ENI’s Goliat FPSO is still to be completed and may take millions of man-hours more.


 
Potential risks to future growth include rising costs and the potential (albeit currently small, and in the longer term) competition from shale gas production. A recent victim of rising costs was the subsea compression project at Ormen Lange, despite positive results during testing and the backing of Statoil and ExxonMobil. Recent onshore legislation changes in the UK now allows for drilling and pipeline construction under private property. This, along with growing encouragement from Westminster of E&P companies, shows that shale gas extraction could be possible on a larger scale towards the end of the decade.

 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

Foster Wheeler & MDM Engineering Merged

Foster Wheeler AG announced today that an indirect wholly owned subsidiary of the Company has completed the acquisition of MDM Engineering Group Limited (“MDM”)

Technip & Fluor Bag RAPID UIO Project

Technip, in a joint venture with Fluor, was awarded an engineering, procurement and construction management contract by PRPC Utilities and Facilities Sdn. Bhd.

News

USCG Monitoring Barge adrift in Beaufort Sea

U.S. Coast Guard personnel and Canadian federal agencies, including the Canadian coast guard, Transport Canada and Environment Canada, are monitoring a 134-foot

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

Offshore Energy

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

A History of U.S. Oil Export Controls

On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war.

Three Dead in Offshore Platform Accident

Three workers were killed and one is still missing after an accident at one of the offshore oil and gas platforms in the Caspian Sea in Azerbaijan, Azeri state energy company SOCAR said on Thursday.

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2023 sec (5 req/sec)