Oil industry boost as huge field found

New site off Shetland could yield billion barrels

AN oil exploration company claims to have made the largest discovery of oil in UK waters this century. Hurricane Energy announced yesterday a site 60 miles west of Shetland may have a billion barrels.

The discovery is significantly bigger than any other found since the millennium, with previous discoveries averaging only 25million barrels.

The announcement will come as welcome news for the oil industry, which has been struggling since a catastrophic collapse in prices since 2015.

Recent figures revealed the industry had raised 80 times less than the SNP had predicted in the run-up to the 2014 independence referendum.

At the time, Alex Salmond and Nicola Sturgeon claimed the industry would raise up to £7.9billion in 2016-17. Earlier this year, the independent Office for Budget Responsibility said it would be £100million. Hurricane hopes to begin extracting the oil, found more than a mile beneath the ocean floor, in two years.

It is unclear how much the discovery could bring into the Scottish economy.

Highlands and Islands Nationalist MSP Maree Todd said the find, known as a ‘basin’, would give a welcome boost to the economy.

She added: ‘This is a significant discovery and a welcome reminder of the huge untapped potential that remains in Scottish waters.

‘Throughout the downturn in the global oil and gas industry, the Scottish Government has invested in research and development – helping firms to lay foundations for future growth.

‘The UK Government has demonstrated a shameful lack of action, sitting on its hands in the recent Budget statement and designating the oil and gas sector a “low priority” in Brexit negotiations.

‘Perhaps this welcome news for the industry might, at long last, spur the UK Government into action in providing long overdue support for Scotland’s energy sector.’

Hurricane said oil was initially found in two wells known as Halifax and Lancaster, which sit 19 miles apart.

Research has now found the wells are actually connected by one giant field, making it the ‘largest undeveloped’ oil find in British waters this century.

But despite its capacity, the latest find is only a fifth of the size of the North Sea Forties field. Discovered in 1970, Forties contains about five billion barrels – of which two billion have been recovered.

Hurricane chief executive Dr Robert Trice said: ‘This is a highly significant moment for the company.

‘We believe that the Greater Lancaster Area is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf [UKCS].’

A spokesman for the firm said: ‘This is certainly the biggest undeveloped oil find in UK waters this century.’

Deirdre Michie, chief executive of industry authority Oil and Gas UK, said: ‘This is extremely exciting and welcome news for the UKCS.

‘However, it needs fresh investment so it can capitalise on its potential. There are still up to 20billion barrels of oil and gas to go after in the UKCS and we believe that makes the basin a very positive investment prospect indeed.’

Market Report – Page 70

‘Exciting and welcome news’