North Sea output hits 15-year high

NORTH SEA oil production is at its highest level in 15 years – despite the downturn caused by plummeting prices.

New figures from the Department of energy and Climate Change (DeCC) show that, in the past three months, oil production is up by 15 per cent and gas by 12 per cent compared to the same period last year.

total energy production, which includes wind farms and power stations, is up by just over 10 per cent.

the double- digit increase means oil production is poised to rise for the first time since 1999.

the North Sea industry has shed more than 65,000 jobs in the past 18 months, with thousands more to follow.

last year, it posted the biggest annual loss for 40 years – £5.3billion – due to spiralling costs and falling income.

But new fields continue to come on stream, including the Golden eagle development 44 miles north-east of Aberdeen operated by Nexen Petroleum UK, a subsidiary of Chinese oil giant CNOOC.

It produces about 18,000 barrels of oil a day but is expected to reach a peak of about 70,000 barrels a day this year. the DeCC said total energy production rose by 11 per cent – the highest rate of growth since it peaked at the start of 2000.

there were seven exploration and appraisal wells started offshore in the second quarter of 2015.

But the number of development wells drilled offshore fell to 37 in the latest period, from 41 previously.

Mike tholen economics director at industry body Oil and Gas UK said: ‘Strong investment in asset integrity over the last four years, coupled with measures being taken to improve the efficiency of assets offshore, have resulted in better output from many existing fields.

‘We expect the rate of decline in production from those fields to slow significantly over the next two years.

‘With the start-up of the sizeable Golden eagle field, the Government’s data indicates that over this full year, we are likely to see annual production increase.’