The blame for This state organization primarily blamed the low oil prices in the second half of the year, but also the rising costs of production from the more difficult the exploitation of the North Sea.
– even at the price of a barrel of oil at $ 110 a British oil sector potential was heavily nadwątlony by the rising costs of exploration and production, high tax burden and inadequate regulations. At current oil prices, these factors manifest themselves with a vengeance – says president of the Oil & amp; Gas UK, Malcolm Webb.
As a result, the outflow of cash from companies operating in the UK Continental Shelf was the highest since the 70s of the twentieth century, when it took place the biggest investment boom in the area.
The amount of revenue from sales fell in 2014 to 24 billion pounds, the lowest level since 1998, when oil was below $ 20 per barrel. In conjunction with the high cost of gave it 5.3 billion pounds a negative cash flow throughout the industry each year.
It is interesting that 2014 years saw record levels of investment in the UK’s oil sector. They amounted to up to 14.8 billion pounds, but according to the organization was not a result of the good times, but rather an increase in costs associated with ongoing projects. Despite such high costs, companies were able to drill only 14 of the planned 25 exploration wells.
According to the Oil & amp; Gas UK, the level of investment can not be maintained at the current market situation. Experts organizations estimate that the amount of this year’s investments will range from 9.5 to 11.3 billion pounds, an increase of about one-third less than in 2014. The number of new exploration wells to be even lower than in the previous year and range from 8 to 13 .
If the current situation continues in the coming years, the organization provides that the amount of investment in projects already approved in the region could fall to just 2.5 billion pounds in 2018. Company also forgo planned projects – the estimated cost of this investment in the next three years were reduced from 8.5 billion a year ago to 3.5 billion pounds today.
According to the President Oil & amp; Gas UK, the prevailing view among the companies that the current cost base in the North Sea is far too high. In his opinion, to be able to think of any future investments in the region, the cost would have to fall by about 40 percent. – Companies are already taking steps in this direction, but cost control is just one part of the equation – says Malcolm Webb.
In his opinion for the extraction of the identified at the moment reserves of 10 billion barrels of oil equivalent, you will need about 94 billion pounds in the form of investment. – In order to achieve this goal will require concerted action on three fronts – tax, regulatory and cost – Webb added.
According to him, you can see the light at the tunnel. – The only positive indicator of this year’s report on the state of the industry is the fact that the size of production in 2014 compared to the previous year recorded the smallest decline since 2000. The decline was only 1 per cent., And the average production was 1.42 million barrels of oil equivalent per day. Observed since the beginning of the twenty-first century decline in production failed to stop due to the increasing number of new projects started on smaller deposits, previously considered uneconomic to operate. Commencement of production from these fields was in turn made possible by specifically targeted tax benefits – says the president of the organization.
According to him, in the current year may move production of up to 15 such deposits. As a result, in 2015 may increase the extraction of the UK continental shelf for the first time since 2000.
– Oil Industry is our national treasure, and indigenous oil and gas is a guarantee of energy security for the next decade. We have the knowledge and technology that allows us to exploit these deposits. We also welcome the actions of the government, which even before the recent sharp fall in oil prices, takes steps towards reform of the tax system. Today, however, the time has come for decisive action and make permanent changes, both the industry and the government – Malcolm Webb calls.
From London Marcin Szczepanski
Download free program PIT 2014
No comments:
Post a Comment