Report highlights continuing healthy future for the UK Continental Shelf

The report provides information on expenditure and activity in the UKCS over the five year period from 2012-16, highlighting levels of capital, operating, exploration and decommissioning expenditure, as well as details of new and potential field developments.

It highlights that over the period to 2016, a total of £44bn in capital expenditure is expected to be invested and identifies 86 new fields currently under development, or on which work could begin on before 2016.

These include the £2.5billion development of the Laggan and Tormore gas/condensation fields in the West of Shetland area. In addition, major new investments are currently underway on 12 existing fields, such as Forties and Schiehallion.

These developments will in turn create significant opportunities for new contracts for the supply chain, and the report highlights specifically where these opportunities lie.

Welcoming the report while visiting Scottish Enterprise’s offices in Aberdeen today, Energy Minister Fergus Ewing said:

“I warmly welcome this report which clearly demonstrates the vast potential of the Oil and Gas sector in Scotland.


“My ongoing tour of oil and gas companies in the North East has confirmed to me how vitally important this sector is to Scotland's economy. With more than half of the value of the North Sea's oil and gas reserves yet to be extracted, up to 24 billion recoverable barrels with a potential wholesale value of £1.5 trillion, oil and gas I am sure the sector will remain an enormous economic resource for decades to come.


“The Scottish Oil and Gas strategy, developed by industry, the Scottish Government and Scottish Enterprise, lays out a plan to help the industry go from strength to strength, and rising capital investment - reaching £8.5bn in 2011 and expected to rise to £11.5bn in 2012 - demonstrates the confidence investors and the industry have in Scotland.”


David Rennie, director of oil & gas at Scottish Enterprise said:


“We know that the remaining recoverable resources on the UK Continental Shelf should ensure production for decades to come and the high level of activity, as set out in this report, will create significant opportunities for companies in the sector.


“The industry-led Oil & Gas Strategy has already highlighted the importance of the sector for the Scottish economy, and the development of a number of new and existing fields play a key role in this.”


The spends and trends report is one of a regular series produced by Scottish Enterprise, which assess prospects and gives valuable market insights for the offshore oil & gas industry in a number of regions. This report will shortly be followed by a similar report looking at the major planned developments in key global markets.