• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 1 hour Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 mins Why is Strait of Hormuz the World's Most Important Oil Artery
  • 6 mins Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? To get Jared (Frisch School 2.8 GPA) a Mideast win with peace deal ? China greatest threat next 50 years.
  • 1 hour Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 5 hours IMO2020 To scrub or not to scrub
  • 7 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 4 hours California's Oil Industry Collapses Despite Shale Boom
  • 1 hour Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 6 hours Devastating Sanctions: Iran and Venezuela hurting
  • 6 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 6 hours Shale to be profitable in 2019!!!
  • 2 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 1 hour "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
War With Iran Could Send Oil To $250

War With Iran Could Send Oil To $250

As tensions between Iran and…

The Fear Factor Is Back For Oil

The Fear Factor Is Back For Oil

While fundamentals suggest lower oil…

North Sea Oil Output Set For Decline

Offshore

North Sea crude oil and condensate production will decline by 40,000 bpd next year as fewer new projects come online, according to research from ESAI Energy. Before that, however, production will rise by 50,000 bpd to reach some 2.9 million bpd this year.

The increase this year will come on the back of new projects and “light maintenance schedules,” ESAI Energy said as quoted by Trend news agency, which will offset the depletion of legacy fields in the area.

In its report, ESAI Energy noted that explorers in the North Sea had benefited from higher oil prices like the rest of the industry, despite field depletion.

“By renegotiating service contracts and focusing on the most promising fields, companies have been able to bring online projects, sanctioned at higher crude prices, profitably. Producers in the UK also received a small assist from the government in the form of reduction in the headline tax rate from between 50-65 to 40 percent,” the research company said.

The North Sea has seen quite a lot of activity recently. Earlier this year, Shell struck a deal with Chrysaor to sell it most of its assets there for $3.8 billion, significantly reducing its decommissioning costs associated with the mature fields.

BP, another giant with a substantial presence in the area, agreed to sell its Forties pipeline network – the oldest and largest in the North Sea – for $250 million to UK-based chemicals company Ineos, which is set on building a presence in the area.

Related: Iran Ramps Up Oil Output As OPEC Production Falls

At the same time, some explorers are making new discoveries, potentially significant. Hurricane Energy, for example, announced in early April that it has struck what’s possibly the biggest untapped oil deposit in the UK continental shelf.

The Greater Lancaster Area may contain as much as 590 million barrels of crude – an upward revision from Hurricane Energy’s 2013 assessment of the field, which stood at 200 million barrels. Potentially— but it could rise to as much as 1 billion barrels. Production, however, will only start in 2019, at an initial target rate of 17,000 bpd.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News