Oil industry warn demand will not be met
“SERIOUS exploration” has to be done to extract the 20billion barrels of oil that could remain underground in the North Sea, an industry guru has warned.
Oil tycoon Sir Ian Wood told MPs there is “no way” energy firms will be able to access the total reserves off the Scottish coast while exploration rates remain at a record low.
The Commons’ Scottish Affairs Committee heard BY TORCUIL CRICHTON that the current estimate was that half the oil would be left in the ground.
Deirdre Michie, chief executive of industry body Oil & Gas UK, said drilling in the North Sea had hit an all-time low.
Government agency the Oil and Gas Authority estimated there are the equivalent of between 10billion and 20billion barrels of oil remaining off the shore of the UK.
Michie said that with 44billion barrels already removed, “you could say there is another third of activity still to go after”.
In the past four years, improved efficiency in the North Sea has led to a 16 per cent increase in production, she said.
Michie insisted there was a “long-term and sustainable future” for the sector, but added: “The concern is that with low levels of exploration, as we look past 2020 we will start to see production fall away.”
Wood, who carried out a review for the UK Government into how to maximise recovery, said: “Disappointingly we’re still looking at 11.7billion barrels. That’s way short of the 20billion barrels we hoped might come.”