Figures reveal continued positive outlook for the UKCS

News - October 15, 2012

Confidence is returning to investment decisions being made in the UK Continental Shelf (UKCS), according to latest figures from business advisory firm Deloitte.

The latest North West Europe Review, produced by the firm’s Petroleum Services Group, shows drilling activity in the UK during the first three quarters of 2012 has exceeded the same period last year and is just 6 per cent off the total number of wells drilled during 2011.

With three months of the year still to go, drilling levels are on target to overtake 2011’s total.

In addition, the number of UK deals - where oil and gas fields are bought and/or sold -reported this year is already up 5 per cent on the total number which took place last year.

The number of fields granted development approval in the UK this year has also surpassed the total number of approvals in 2011.

Although the third quarter saw a decrease in the number of exploration and appraisal wells drilled, when compared to the second quarter this year, said Graham Sadler, Managing Director of Deloitte’s Petroleum Services Group, when other factors are considered, the figures illustrate greater stability returning to the sector.

He said: “While this quarter’s drilling activity showed a decrease when compared to the second quarter, cumulatively we can see 2012 eclipsing drilling activity in 2011.

"We’re still not seeing pre-recession levels of activity, but there’s a definite feeling of some confidence coming back to businesses operating in the UKCS.”