Promising new oil projects for North Sea

NEW OIL projects over the next two years in the North Sea will have combined capacity to produce 1.2 million barrels per day (bpd), offsetting a slide in output from the oldest deep-water basin that produces the world’s benchmark crude.

The projects stretch from the West Shetlands to the icy fringes of the Arctic Ocean.

North Sea crude output was 2.54 million bpd in 2016 and is forecast to reach 2.59 million bpd in 2017 and 2.63 million bpd in 2018, based on output figures for the three main producers Norway, Britain and Denmark from consultants Rystad Energy.

The North Sea produces Brent and three other crudes – Forties, Oseberg, and Ekofisk – that make up the Brent futures benchmark. The region is expected to report its third annual production rise in a row this year, reversing years of sliding output.

Since exploration began in earnest in the 1960s, about 40 billion barrels of oil have been extracted from the North Sea.

A 50% drop in oil prices from above $100 a barrel in 2014 has forced some North Sea producers to sell assets. Others have adapted as they seek to extract more of the 20 billion barrels estimated to lie under Britain’s North Sea zone alone.

“The drop in the oil price forced everyone to focus even more than they were on (production) uptime and operating efficiencies, which have risen dramatically over the last two years,” said Premier chief executive Tony Durrant.

“We’ve been at over 90% operating efficiency and a lot of the other players are very high too. If you roll back to 2012-2013, then the North Sea had a shocking record of about 65%.”