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

Offshore

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

Navantia Orders Sedni IAS for PEMEX Flotel

Sedni secures an important contract with Navantia to supply its Automation System (IAS) Diamar for the flotel vessel (BAP) which is being built at Ferrol factory for PEMEX owner.

MN 100: Tidewater Inc.

601 Poydras Street, Suite 1500 New Orleans, Louisiana 70130 Telephone: 504 568 1010 E-mail: corth@tdw.com Website: www.tdw.com Chairman and CEO: Jeff Platt Number of employees: 8,

Energy

Deep Sea Mooring Wins Contract with Repsol

Global energy company Repsol has selected Deep Sea Mooring (DSM) to provide a range of mooring services for their drilling operations on the Norwegian Continental Shelf.

Statoil: New Compressor Means Heightened Production

The new compressor in operation on the Kvitebjørn field in the North Sea from 17 September will increase production there by 220 million barrels of oil equivalent

China's Navy Enters Strait of Hormuz

Bandar Abbas, home of Iran's navy and the main port in the strategically important Strait of Hormuz, is currently hosting two Chinese naval vessels on a five-day goodwill visit,

News

TOTE, Saltchuk Secure Financing for Marlin Class Vessels

Maritime Administration to Provide Title XI Loan Guarantee for World’s First LNG Containerships Today, the U.S. Maritime Administration (MARAD) announced a $324.

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

Navantia Orders Sedni IAS for PEMEX Flotel

Sedni secures an important contract with Navantia to supply its Automation System (IAS) Diamar for the flotel vessel (BAP) which is being built at Ferrol factory for PEMEX owner.

Offshore Energy

Transocean: Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service

Navantia Orders Sedni IAS for PEMEX Flotel

Sedni secures an important contract with Navantia to supply its Automation System (IAS) Diamar for the flotel vessel (BAP) which is being built at Ferrol factory for PEMEX owner.

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Repair Ship Simulators
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: 0.1639 sec (6 req/sec)