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Oil production drop blamed on assets’ ‘falling efficiency’

Oil production drop blamed on assets’ ‘falling efficiency’

Oil production in the North Sea is down nearly 14% on this time last year, according to new figures from the UK Government.

The Department for Energy and Climate Change said “general decline and maintenance work on a number of fields” had hit the UK continental shelf during the second half of 2013.

Its estimates that production dropped by 13.4% compared to the second quarter of 2012. Industry body Oil and Gas UK said last night that the North Sea is suffering as a result of the “falling efficiency” of assets.

But investment in the North Sea will reach a record £13.5billion this year, according to the group.

An unplanned shutdown on the Buzzard platform has been blamed for part of the decline.

Schiehallion, which contributed just under 5% of production in 2012, has also been shut down for redevelopment since early 2013.

David Odling, Oil and Gas UK’s energy policy manager, said: “While oil and gas production from the UK has suffered in recent years from falling efficiency of assets, it is encouraging to see that the rate of output decline appears to have slowed in the second quarter of this year and, more importantly, over the last year as a whole.

“While the publication mainly focuses on the share of each fuel in electricity production, this use only comprises one third of total energy use. Oil and gas are and will continue to be the dominant sources in the other two thirds, heat and transport, for many decades to come and we expect the recent wave of strong investment on the UK continental shelf to help maximise recovery of the UK’s own reserves to the benefit of the economy, innovation and skilled jobs.”

The Decc figures also show that generation from onshore wind was up 70% on the same time last year, while offshore wind showed an increase of 51%, due to increased capacity onshore and offshore, as well as high wind speeds. Maf Smith, deputy chief executive of RenewableUK, said: “This confirms what we have been seeing for some time, which is renewables steadily becoming more important in meeting our electricity needs, and wind being responsible for the lion’s share of the progress.

“That this period coincided with one of the coldest springs on record means that wind was providing this power at a crucial time.”