Oil and gas exploration falls to lowest level in five years

Aurora · Post by **Aurora** » 15 Jan 2010, 04:21

The Independent - 15/01/10

North Sea oil and gas exploration dropped by 35 per cent last year, taking it back to levels last seen five years ago, according to figures published by Deloitte yesterday.

Only 78 new wells were drilled in 2009, compared with 121 in 2008. Exploration activity was down by almost half, appraisals by a quarter. Meanwhile, new drilling in the Norwegian North Sea shot up by 18 per cent last year thanks to a more generous tax regime.

Article continues ...

biffvernon · Post by **biffvernon** » 15 Jan 2010, 07:00

Er... the tax regime may be significant but isn't it more a case that the UK sector has already been more thoroughly explored so there are fewer places to sink wells?

ziggy12345 · Post by **ziggy12345** » 15 Jan 2010, 07:41

No. There are still large parts of the north sea with viable oil and gas plays.

http://www.telegraph.co.uk/news/2077195 ... erves.html

Oil and gas companies would prefer to explore in areas that have the right infrastructure in place such as ports, specific manufacturing, offshore terminals etc.. but the tax is so bad in the UK they have all left.

As soon as the electricity companies get their wind turbines up offshore UK it will be the same scenario for them

RenewableCandy · Post by **RenewableCandy** » 15 Jan 2010, 17:04

...the tax is so bad in the UK they have all left.

As soon as the electricity companies get their wind turbines up offshore UK it will be the same scenario for them

Hmm they need an offshore banking business

neckiep · Post by **neckiep** » 16 Jan 2010, 17:32

If there are areas of the north sea with viable gas and oil plays as ziggy says then presumably those areas have already been explored?

ziggy12345 · Post by **ziggy12345** » 17 Jan 2010, 00:09

Not necessarily. A viable play means it has the potential to have economical recoverable reserves. Exploration and development will confirm this