The trade association for the oil and gas indsutry, Oil & Gas UK, launched this month their annual Decommissioning Insight - the industry leading forecast for decommissioning activity and expenditure on the UKCS.
This year the report focuses on the activity of 28 operators, providing intelligence on their decommissioning plans for the next 10 years.
Data was compiled from operators’ responses to an Oil & Gas UK survey conducted this summer on their decommissioning activity and expenditure in 2013 and respective forecasts for 2014 to 2023.
Oonagh Werngren, Operations Director at Oil & Gas UK said, “Decommissioning Insight 2014 will be of huge interest to both operators and contractors as they look to the future. Our report provides the industry with the facts and figures it requires in order to be as informed and prepared as possible for when opportunities arise in this growing sector."
"For operators, this might be a case of collaborating on work programmes to reduce cost and gain greater efficiency, and for the broader supply chain it is ensuring the UKCS is geared up to take on this new challenge, ensuring the right technologies are developed and we have the resources in place to handle the work.”
The Wood Review launched earlier this year, outlined the steps the sector should take to maximise economic recovery from the UKCS.
It also recommended a decommissioning strategy to support that objective, and help the sector benefit from sufficient early planning and co-ordination that, as decommissioning progresses, gains the UK competitive industrial capability to meet the needs of maturing oil provinces at home and abroad.
Oil & Gas UK's aim for the report, is to help achieve the goal set by the Wood Review.
Below is a interactive version of the Decommissioning Insight report. If you are unable to see it on your device, click here.
Key report findings
- Total forecast expenditure on decommissioning from 2014 to 2023 is £14.6 billion
- Forecast expenditure has increased since 2013 due to new respondents and higher project costs
- 43% of total forecast expenditure will be concentrated in the central North Sea
- Most of the decommissioning programmes captured in this survey are considered to be in the early scoping stages.
- Well plugging and abandonment (P&A) is largest expenditure at £6.4 billion
- Operators forecast that decommissioning expenditure in 2014 will reach £1 billion for the first time in a single year and will average £1.5 billion each year over the ten years (2014 to 2023).
Photo Credit: Pete Markham via Flickr