Oil & gas production rose in 2015

According to Oil & Gas UK chief executive Deirdre Michie, it is the first rise in production on the UK Continental Shelf (UKCS) for more than 15 years.

Indeed, figures suggest a 10.6% increase in the production of liquids and a 6.1% increase in gas production, meaning the total volume of oil and gas produced was 8.6% higher in comparison to 2014.

“Given the difficulties being faced by the industry this is welcome news,” Michie said.

“In February 2015 we predicted a marginal increase in production for 2015, but the industry-wide focus on improving production efficiency coupled with investments of more than £50 billion over the last four years to bring new fields on stream across the last twelve months is paying off and yielding a better result.”

However, though firms are continuing to announce “first production” in UK oil fields, Michie said 2016 will be tough for oil companies.

“We will continue to see job losses as we move into 2016 and we must be thoughtful and supportive of our colleagues and their families who are being made redundant or who are at risk of being made redundant.

“As we go through these times, we have to be resilient and focus on what we need to do to get us through the coming months to ensure an enduring industry for the future,” she said.

There is, however, opportunity ahead, as the UKCS still holds up to 20 billion barrels of recoverable oil and boasts “a workforce that is unsurpassed globally," Michie said.

This year, Oil & Gas UK’s UK’s industry-lead Efficiency Task Force is expected to lead the drive for better co-operation throughout the sector. As a means of achieving that expectation, it has launched an online portal where companies can share common problems and highlight successful solutions.