The UKCS continues to deliver above global average exploration success rates with a commercial rate of success of 46% in 2015 (Hannon Westwood).
An extensive infrastructure and world class supply chain reduces the capital required to connect to the proximal market.
The UK industry is rapidly reacting to the low oil price environment. Drilling and development costs, in particular, are dropping significantly as both operating and service companies collaborate together to find an efficient way forward.
The UKCS has a set of world class petroleum systems with a total of 43 billion barrels of oil equivalent recovered to date and a remaining 15-24 billion barrels of oil equivalent yet to be recovered (DECC). This includes 3-9 billion barrels of oil equivalent of yet-to-find resources (DECC, Oil & Gas UK).
Improving Fiscal Terms
The UK provides one of the most geopolitically stable havens for investment in the world. Furthermore, recent fiscal changes in the UK represent a game changer for exploration and underscores the country’s global competitiveness in terms of fiscal and regulatory regime.
This has been highlighted by the UK industry’s record breaking £19 billion of capital investment on developments in 2014. This puts the UK in the top 10 countries for upstream spend and highlights the willingness of companies to invest in exploration successes.