Scottish oil and gas statistics announced

Oil and gas production in Scotland (including Scottish adjacent waters) during the financial year 2017–2018 is estimated to have been 73.7mn toe, according to the latest statistics published by Scotland’s Chief Statistician. Production in Scotland decreased by 1.7% compared to 2016–2017 and accounted for 81% of the UK total (down from 82% in 2016–2017). However, production for the year remains 23.1% higher than the level recorded in 2014–2015.

In 2017–2018, oil and gas fields in Scotland accounted for 96% of UK crude oil and natural gas liquids (NGL) production, and 63% of UK natural gas production, with a total value of some £20bn. The approximate sales value increased by 18.2% compared to 2016–2017, despite the slight decrease in production, due to continued increase in prices throughout 2017 and the beginning of 2018.

Operating expenditure (excluding decommissioning) on oil and gas production in Scotland is estimated to be £6.2bn for the year, up from £5.3bn in 2016–2017. Capital expenditure on oil and gas production in Scottish waters is estimated to be £5.8bn, down from £7.8bn in financial year 2016–2017.

Commenting on the figures, Minister for Energy, Connectivity and the Islands, Paul Wheelhouse, says: ‘I welcome the findings in the report which show the sector has seen an 18.2% increase in sales value. These figures reflect the increased price of oil and gas on the global markets and show confidence is continuing to return to the sector. Capital investment in oil and gas fields in Scottish waters remains strong at around £6bn in financial year 2017–2018, and oil production is up slightly. At the same time the industry faces continuing challenges, including issues around exploration, and the Scottish government will continue to do what we can to support the sector.’

‘However, the UK government retains most of the key policy levers affecting the offshore sector, so we will continue to argue they should bring forward measures to rebuild exploration activity and to maximise economic recovery, while also providing an immediate boost to the supply chain.’