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UK Continental Shelf Increases Oil And Gas Production

The amount of oil and gas produced by the UK’s continental shelf increased to 1.7 million barrels last year, up by 20 per cent compared to 2014’s output.

According to the figures published by Oil and Gas UK (OGUK) in its latest Business Outlook, the fossil fuels are also expected to meet the majority of the country’s energy demand for the foreseeable future.

In fact, it’s estimated that oil and gas will meet around two-thirds of the UK’s energy supply in 2035, with the organisation stressing that it’s vital for as much of this as possible to come from “indigenous sources”.

Last year, 59 per cent of the UK’s total oil and gas demand was met by fuel produced on the UK continental shelf. There were also two major discoveries on the UK continental shelf last year, at Glendronach and Glengorm. These were the largest oil and gas discoveries in the region in the last ten years.

What’s more, 13 new projects on the UK continental shelf were approved last year, which is more than were approved in the previous three years combined.

There could therefore be greater demand for components and solutions relating to the storage of natural gas, such as overfill prevention systems.

The OGUK report also estimated that exploration and production companies would need to invest around £200 billion to extend the life of the continental shelf by a generation.

And there could be more discoveries to be made in previously unexplored areas of the UK continental shelf. Oil & Gas Journal reported earlier this month that some areas have previously been discounted because they were thought to contain volcanic craters, however, this assumption was based on incorrect geological data.