Sunday, October 25, 2020

Oil: Rystad—U.K. Continental Shelf Output Never to Return Above 2 Million boe Per Day

From Offshore

Even though Hurricane Energy had promising exploration results in UK’s fractured basins, energy intelligence firm Rystad Energy believes that the country’s hydrocarbon production would never rise above 2 million boepd again.

Rystad said on Thursday that hydrocarbon production on the United Kingdom’s continental shelf (UKCS) dropped steadily since its peak at 4.3 million barrels of oil equivalent per day (boepd) in 1999, never exceeding 2 million boepd after 2010.

Promising exploration results by Hurricane Energy in fractured basement reservoirs, previously untapped in the UK, were until earlier this year expected to revive the country’s output to 2.1 million boepd by 2035. But according to Rystad Energy, those hopes have been dashed.

A recent jaw-dropping downgrade of Hurricane Energy’s Lancaster field revealed that the reservoir is more complex than previously thought. The result is a drastic resource downgrade for the company’s entire asset portfolio, as all its resources lie in fractured basement reservoirs.

This is a major blow to the outlook for the UK’s future petroleum production, as fractured basement resources were estimated to account for nearly one-fifth of the future oil and gas output from the UKCS”, the intelligence company stated....


From Trading Economics (also on blogroll at right):